Consolidation continues to reshape the banking industry. The number of FDIC-insured banks has fallen from over 18,000 in the mid-1980s to fewer than 4,300 today. Bank M&A activity remains steady, with deal volume growing in 2024 and 2025, and 2026 looking to come close to 2025 numbers.
During the first half of 2026, community banks with less than $1 billion in assets made up almost 90% of the sellers in announced deals, signaling a shift in the seller mix to smaller community banks with strong earnings capacity. Private bank boards and management may want to consider what is required in the current environment to remain independent and achieve growth and scale, or alternatively become a target for larger acquirers. One strategy a private bank can use is to go public through an initial public offering (IPO) or direct listing on an exchange, which can provide capital, currency and liquidity for future growth. Here are three reasons why now may be the time for your bank to go public.
