Bank advisers and market participants at S&P Global Market Intelligence’s annual community bankers said bank M&A and IPO activity is in a holding pattern and will pick up once there is greater clarity over the macroeconomic and interest rate environment. They also suggested that banks avoid trying to position their balance sheets for particular rate moves and instead prepare for a variety of scenarios. The episode highlights balance sheet strategies, the current regulatory environment and the outlook for bank deal activity from experts at Piper Sandler, Darling Consulting, Alston & Bird, Stephens, KSK Investors and Hovde Group.

The emergence of tariffs led to a broad selloff of US banks amid fears of slower economic growth or even a possible recession. Banks’ first-quarter earnings season showed strong performance before the onset of tariffs, but ultimately might have left investors with more questions than answers.
In the episode, senior reporter Harry Terris shared the key takeaways from large banks’ first-quarter results and highlighted commentary from JPMorgan, Bank of America, Capital One, First Citizens and others. The results show a noticeable divide between "hard" data, such as consumer spending strength, and "soft" data, like stock market volatility and economic forecasts. Despite the uncertainties, major banks have largely maintained their financial guidance. However, they have adjusted loan growth expectations downward due to a more cautious approach from clients, reflecting a "wait and see" attitude amid the current economic climate.
Bank news lead Lauren Seay further discussed how tariffs are expected to negatively impact M&A activity, but also notes that the trade policies have not completely stymied bank deals, with large transactions like Columbia Bank’s plans to purchase Pacific Premier surfacing since tariffs were announced.

Each year, S&P Global Market Intelligence ranks top-performing financial institutions in the following categories: community banks $3 billion to $10 billion in assets, community banks with less than $3 billion in assets, credit unions will more than $100 million in assets, and the top largest U.S. public banks by total assets. In another installment of Tales from Top Performers, executives from two winners of the community bank rankings – Nicolet Bankshares CFO Phil Moore and Northeast Community Bank Chairman and CEO Ken Martinek – share what differentiates their franchises and how they have outperformed peers. They also discussed the greatest challenges and opportunities they see over the next 12 months, both organically and through M&A activity.