Bank M&A Activity Surges in March, Lifting Q1 2025 Deal Value to $1.61B
In the first quarter of 2025, 34 U.S. bank deals totaling $1.61 billion were announced, the highest first-quarter aggregate deal value since 2021, per S&P Global Market Intelligence data. This outpaces prior years: Q1 2022 saw $1.53 billion, Q1 2023 hit $433.8 million, and Q1 2024 reached $796.2 million.
March alone accounted for 15 of these deals, as many buyers and sellers held off earlier, awaiting better conditions. A standout was FB Financial Corp. of Nashville, TN, acquiring Southern States Bancshares Inc. of Anniston, AL, for $380.7 million on March 31. With a deal value-to-tangible common equity ratio of 156.6%, it was the quarter’s largest and fourth-priciest U.S. bank M&A, marking FB Financial’s first major move since its $623.1 million Franklin Financial Network Inc. purchase in January 2020.
Another key deal on March 31 was the reverse merger of Seattle’s HomeStreet Inc. into Walnut Creek, CA’s Mechanics Bank. HomeStreet, with $8.12 billion in assets, is 2025’s biggest bank target to date. The merger will create a $23 billio West Coast player, expanding Mechanics Bank’s reach. This follows HomeStreet’s scrapped $664 million deal with Denver’s FirstSun Capital Bancorp in January 2024, nixed by regulators.
On March 12, Joliet, Illinois-based NuMark CU agreed to acquire most assets and liabilities of Lemont National Bank in Lemont, IL—the fifth Illinois-based target this year, making the state the most active for bank M&A. The Midwest led with 13 targets (nearly 40% of deals), followed by the Southeast with six.
Hovde Group analyst Brendan Nosal noted that first-quarter activity fell short of an expected “wave,” though deals are closing quicker. Stock volatility, including tariff-driven plunges, delayed some announcements, with bankers advising patience for a later-year pickup. However, they warn that persistent market turbulence could stall U.S. bank M&A entirely.