Financial institutions are embracing mergers and acquisitions as a catalyst for purposeful growth
Bank and credit union mergers are on the rise in 2025, as financial institutions actively pursue opportunities to expand, evolve, and enhance their competitive position in the marketplace. From attention-grabbing mergers among big banks and regional institutions to more focused unions among community banks and credit unions, leaders across financial services are leveraging M&A as a strategic tool. When done well, M&A allows institutions to unlock growth, fuel innovation, deepen relationships, and enhance geographic presence. Beyond marketplace demands, today’s dealmaking reflects a clarity of purpose – smart consolidation with intentional alignment.
Deal volume is building, reaching 57 transactions by midyear, matching last year’s pace with activity expected to rise even more in the second half of the year. As institutions modernize operating models and deliver more dynamic experiences, M&A can provide a fast track to transformation – not only in the size and scope of the branch network, but also in elevated experiences. “Financial services companies turn to M&A to deliver at scale and access new technologies and talent,” according to PwC’s Midyear Outlook. “We expect ongoing momentum in banking deals driven by a focus on portfolio optimization and [institutional] synergies.”
According to Deloitte’s analysis, midsize and regional banks are leading the charge, leveraging consolidation to gain operational agility and augment their digital-first solutions. In reimagining their institutional priorities, these banks are looking beyond traditional paths to growth to embrace partnerships that enable faster scale and more meaningful differentiation among aligned organizations. “Banks need to achieve significant scale to absorb more costs and be competitive,” says Christopher McGratty, Head of U.S. Bank Research at Keefe, Bruyette & Woods in American Banker. “All of our work suggests more M&A is going to happen.”
Credit unions are increasingly involved in M&A. In 2024, there were 22 credit union acquisitions of banks – the highest number on record – and in 2025 there are at least eight deals underway. These transactions represent a strategic expansion beyond legacy boundaries, reinforcing community values and member commitments, while enabling strategic growth in new markets. “We think in a lot of cases, the bank being acquired looks at credit unions in a good light because they’re community-based institutions,” says Curt Long, Chief Economist at America’s Credit Unions, in American Banker. “They tend to keep branches open, keep employees employed, and are committed to serving the existing customer base.”
Whether mergers are between larger banks or community-sized institutions, the race for scale will continue to drive an increased need for M&A. With deal values rising and consolidation projected to reduce the total number of financial institutions in the U.S. by 25% by 2030, M&A is no longer viewed as reactive. “As the competitive environment continues to shift, mergers and acquisitions provide a clear pathway to evolve business models and deliver greater value to customers and communities,” says Gina Bleedorn, President & CEO of Adrenaline. “M&A is a way to scale with purpose and strengthen the ability to meet evolving consumer expectations.”
If you’re a banking leader looking for M&A solutions for banks and credit unions, get in touch with the experts at Adrenaline. Follow Believe in Banking to stay up to date with the latest news impacting the banking and credit union industries.