Following a significant surge in October, the United States banking sector experienced a noticeable decline in merger and acquisition activities during November. This downturn contrasts sharply with the robust performance of credit union M&A, which is on track to set a new annual record. The shift highlights varied dynamics within the financial services industry, as traditional bank consolidation moderates while credit unions aggressively expand their operations through strategic acquisitions.
The slowdown in November's bank M&A reflects a cooling period after an exceptionally active October. While regulatory support and rising costs for sellers suggest continued consolidation, the immediate future may see more measured growth. Meanwhile, credit unions demonstrate resilience and a strong appetite for expansion, signaling a potential reshaping of the market landscape with their increasing presence and influence.
November Sees a Marked Reduction in Bank M&A Transactions
In November 2025, the U.S. banking sector experienced a significant slowdown in merger and acquisition (M&A) activities, following a peak in October that marked the highest deal value in over six years. The month recorded only 11 bank deal announcements, with a total of $6.41 billion in target assets changing hands. This figure places November as the second-lowest total for assets sold in that specific month since 2015, indicating a considerable cooling off in the market. Among the months of 2025, November ranked as the third lowest in terms of assets sold, just slightly above February, which saw $3.09 billion from five deals, and August, with $5.93 billion.
This reduction in M&A volume and value suggests that the momentum gained in prior months did not sustain through November. The dip could be attributed to various factors, including market adjustments, altered investor sentiment, or a strategic pause by financial institutions to reassess market conditions. Despite the overall downturn in the broader banking sector's M&A, the activity among credit unions presents a contrasting picture. Credit union bank deals are showing robust growth and are projected to conclude the year with a strong performance, possibly exceeding the all-time high record of 19 deal announcements set in 2024. This divergence indicates distinct trends and underlying drivers influencing different segments of the financial industry's consolidation landscape.
Credit Union M&A Demonstrates Robust Growth Trajectory
While the conventional banking sector's merger and acquisition activity experienced a notable decline in November 2025, the credit union segment exhibited a contrasting trend of strong and sustained growth. As of November, credit union bank deals were on track to achieve a robust year-end performance, indicating a significant appetite for expansion and consolidation within this sector. With 16 announced transactions recorded so far in 2025, the credit union industry is poised to potentially surpass the all-time high record of 19 deal announcements that was established in 2024. This trajectory highlights an increasingly active role for credit unions in the financial services M&A landscape, distinguishing their growth pattern from that of traditional banks.
The continuous growth in credit union acquisitions can be attributed to several factors, including their strategic objectives to expand geographic reach, enhance service offerings, and achieve economies of scale. This aggressive pursuit of growth through M&A positions credit unions as significant players in the evolving financial market. Their sustained activity suggests a strong underlying confidence in their business models and their ability to integrate acquired entities successfully. This trend also implies that credit unions may be capitalizing on opportunities that traditional banks are either hesitant to pursue or are unable to due to different regulatory or financial constraints. The consistent upward trend in credit union M&A, particularly when compared to the broader banking sector's November slowdown, marks a noteworthy development in the financial industry's competitive and strategic dynamics.