In-state lender NBT is set to combine with another in a $236 million agreement.
Increased Bank Mergers and Acquisitions in the New York Region
The banking sector in the United States, including the New York region, is experiencing a surge in mergers and acquisitions (M&A) activity. After a slow start to 2025 due to regulatory hurdles, the industry is poised for growth as those barriers ease.
One of the most significant local deals involves Norwich, New York-based NBT Bancorp and Williamsville, New York-based Evans Bancorp. The two companies have agreed to merge in an all-stock transaction valued at approximately $236 million. The deal, expected to close in the second quarter of 2025, subject to shareholder and regulatory approvals, will create a bank with a relationship-focused approach while offering an expanded suite of products and services.
Evans Bank, a $2.26 billion asset company operating 18 branches through western New York under its subsidiary Evans Bank, will merge with NBT Bank. The transaction is expected to result in earnings per share accretion of 13.6%, with tangible book value earnback in less than three years. After the merger, Evans CEO David Nasca will join the NBT board of directors. The combined firm plans to retain all branch offices and retail and business development teams.
NBT, which operates 154 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine, and Connecticut, will acquire 100% of Evans' outstanding shares in exchange for common shares of NBT, with the exchange ratio fixed at 0.91 NBT shares for each share of Evans. The merger will help NBT expand west along the New York State Thruway into markets such as Buffalo and Rochester. The combined organization will have the highest deposit market share in Upstate New York for banks under $100 billion in assets.
Another notable deal in the New York region is ConnectOne Bancorp's plans to merge with The First of Long Island Corp. in an all-stock transaction valued at $284 million.
The trend of consolidation is not limited to the New York region. Regional banks, especially those in dynamic economic regions, have emerged as prime consolidation candidates. While much activity has favored growing banks in the South and Southeast, the New York region remains a key market with expanding opportunities owing to improving banking conditions and regulatory outlooks favoring growth via acquisition.
This renewed M&A activity mirrors the broader U.S. banking landscape, where large transformational deals continue to reshape the industry. For instance, the Capital One $35.3 billion acquisition of Discover in 2025 created the sixth-largest U.S. bank and the largest credit card issuer.
As the regulatory environment becomes more accommodating in 2025, supporting new waves of M&A with a focus on growth and technology-driven capability enhancements, the New York region is expected to participate significantly given its financial market importance and improving regulatory climate. This makes 2025 a year of cautious optimism for bank mergers and acquisitions in New York and the broader U.S.
- The growth in mergers and acquisitions activity in the New York region extends beyond the banking sector, as regional banks in dynamic economic regions, such as those with a focus on finance and business, increasingly become consolidation candidates.
- With the New York region's financial market importance and improving regulatory climate, the surge in bank mergers and acquisitions in 2025 may also involve deals between finance-oriented businesses, potentially reshaping the industry landscape further.
