The banking industry in the US just went through a whirlwind of pain with higher rates. To survive in this new landscape, some organizations have looked for merger partners.
Mergers have key benefits for banks. First, they can expand geographic reach – or help deepen their penetration within a market. They also allow for cross selling between newly acquired customers, boosting the bottom line. And, while investors are rightfully skeptical of synergies, cost savings can definitely be gained when you have more branches to cover fixed corporate costs.
So, who’s merging today? In this article, I’ll walk you through some recent bank mergers and let you in on the juicy details.
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Recent Bank Mergers: Which Banks Recently Merged?
Mergers have picked up since banks came under enormous pressure due to rising rates in 2023. There are a number of mergers in the works and completed mergers over the last couple of years, which we detail below.
TowneBank and Village Bank and Trust Financial Corp. Merger
In October 2024, TowneBank, a Virginia banking staple with $17 billion in assets, agreed to buy Village Bank and Trust Financial Corp. from Midlothian for $44.9 million. The deal, offering Village Bank shareholders 0.33 TowneBank shares each, got the green light from regulators on March 11th, 2025, and should wrap up by mid-year 2025.
TowneBank, based in Portsmouth, gains Village Bank’s 7 Richmond-area branches and $648 million in deposits, boosting its total assets to nearly $18 billion. Leaders from both banks — G. Robert Aston Jr. of TowneBank and Jay Lend of Village Bank —say it’s a win for customers, merging community roots with bigger capabilities. I guess with just 7 branches, “Village Bank” was a pretty apt name…
This move fits 2025’s banking trend: smaller banks joining forces amid lower interest rates and a friendlier regulatory vibe under the new Trump administration. While not a headline-grabber like some mega-mergers, it’s a smart play for regional growth and staying competitive.
What’s more, there are tons of these little banks operating in the US, making the area a pretty fertile hunting ground for retail investors.
Southwestern Bancorp and Liberty Capital Bancshares Merger
In a Texas-sized banking move, Southwestern Bancorp and Liberty Capital Bancshares merged on January 10th, 2025, blending two community-focused powerhouses. Southwestern, behind Texas Heritage Bank with $225 million in assets, joined forces with Liberty, parent of Liberty Capital Bank with $415 million, creating a $640 million player.
Announced in September 2024, the deal wrapped up fast, fueled by a decades-long bond between Texas Heritage’s Jack Griggs and Steve Mack and Liberty’s Holt Lunsford. Griggs stays on as a mentor, and Mack joins Liberty’s board, with Holland & Knight guiding the legal side.
Texas Heritage, born in 1931, serves San Antonio and nearby towns, while Liberty, launched in 2008, caters to Dallas’ business and real estate crowd. Together, they’re boosting lending power and market muscle.
This is a classic case of combining strengths to better compete and showcases regional banks teaming up to thrive in a shifting economy — proof that old ties can spark new growth.
Georgia Banking Company and Primary Bankshares Merger
Atlanta’s banking landscape just got bigger with the merger of Georgia Banking Company (GBC) and Primary Bancshares Corporation, sealed on March 1st, 2025.
Announced in October 2024, GBC, a $2.08 billion powerhouse, snapped up Primary Bancshares, parent of Georgia Primary Bank, for $27 million in cash and stock. By March 3rd, the deal was done, blending Primary’s $352 million in assets and two branches into GBC’s network. Now boasting over $2.4 billion in assets and $2 billion in deposits, GBC ranks among Atlanta’s top three local banks.
CEO Bartow Morgan Jr. says it’s about growing in metro Atlanta and filling a niche for mid-sized community banks, boosting services and shareholder value.
David Coxon, once Primary’s CEO, steps into GBC’s executive team, highlighting their shared vision. Advised by top firms, this early 2025 merger shows regional banks joining forces to shine in a bustling economy.
German American Bank and Heartland Bank Merger
In a big Midwest banking move, German American Bancorp scooped up Heartland BancCorp in a $330.2 million all-stock deal, finalized on February 1st, 2025.
Announced in July 2024, German American Bank, an Indiana powerhouse with $6.2 billion in assets, merged with Ohio’s Heartland Bank, adding $1.9 billion in assets and 20 branches.
The result?
A beefed-up bank with $8.3 billion in assets and 94 locations across Indiana, Kentucky, and Ohio.
Heartland shareholders received 3.9 German American shares per stock — worth $155.37 each — while 401(k) holders cashed out at $161.19 per share.
With a standout 212% value-to-equity ratio, this merger opens doors in Columbus and Cincinnati for German American.
Heartland’s CEO, G. Scott McComb, joins the board, keeping the community vibe alive. It’s a bold 2025 play, blending two regional stars into a stronger, broader banking force.
Recent Bank Mergers: What Banks Did U.S. Bank Merge With?
Since adopting the name, US Bank only completed two mergers: with Firstar Corporation (2001), and with MUFG Union Bank (2022).
US Bank is the product of a long evolution consisting of over 6 bank mergers going back to 1902, but its use of the name US Bank is fairly recent – within the last 25 years or so.
Recent Bank Mergers: What Bank Did Bank of America Merge With?
Bank of America has had a busy merger life over the past quarter century, merging with FleetBoston Financial (2004), MBNA (2006), Countrywide Financial (2008), and Merrill Lynch (2008).
The company’s FleetBoston Financial merger in 2004 is the best example of a merger between Bank of America and a traditional bank. The others more strongly cater towards specialist financial services.
Recent Bank Mergers: Why Do Banks Merge?
Banks merge for a number of reasons, but the most common justifications given are to capitalize on synergies between the merger parties, increase branch availability or penetration, and to better leverage fixed costs.
While those are the publicly stated reasons, bank mergers also commonly take place to lower regional competition and to expand a CEO’s empire. After all, how can you feel like a big man when you have a small number of branches?
Bank mergers are pretty common and there are thousands of banks operating in the US alone. Most of these are small local banks or tiny regional players. Bank mergers are expected to heat up, though, with a potentially more liberal regulatory environment during the Trump administration.
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