With scale fueling more bank M&A deals, should banks be raising capital in 2026?

Bank M&A had a good year in 2025 and got off to a slower start in 2026 but is looking to pick up through the rest of the year. Mergers of equals transactions or more to the point, mergers of healthy banks have really picked up steam. Capital is strong right now, the regulatory environmental is favorable, and closing times have returned to a strong average of 131 days. Technology is a major consideration. Institutions that defer technology planning until after signing consistently underperform on synergy capture. Scale is driving M&A activity especially if you are looking to get over the $10 billion asset hurdle. If you want to get in on the M&A game, capital is the price of entry. If you are looking to raise capital before year end, now is a great time for three reasons. 1) stock valuations have recovered, making equity raises less dilutive. 2) The M&A window is open. 3) Loan demand and spreads are good. This episode reviewed two articles from Bank Director titled “3 Reasons why your bank should be raising capital in 2026” and “Why scale is fueling more banking M&A deals than survival.”

Link: Why Scale Is Fueling More Banking M&A Deals Than Survival | Bank Director

Link: 3 Reasons Why Your Bank Should Be Raising Capital in 2026 | Bank Director