Banking M&A in 2026: What’s Coming to Virginia and Beyond

Banking mergers and acquisitions in the United States are entering a new phase of activity in 2026, driven by strategic growth plans, regulatory shifts, and continued industry consolidation. For banks in Virginia, whether community banks or regional players, 2026 is shaping up to be a year marked by major deals with long-term impacts. 

In this detailed article, you’ll get an inside look at the specific bank mergers and acquisitions that are expected to close or take shape in 2026, why they matter, and how Virginia fits into the broader landscape of financial industry deal-making. 

The Big Picture: Banking M&A Momentum Heading Into 2026 

Before we jump into individual deals, let’s step back and understand why 2026 is on track to be a big year for bank consolidation. 

After a relatively quiet period in the early 2020s, U.S. bank mergers and acquisitions accelerated sharply in 2024 and 2025 and now show strong momentum going into 2026. The industry saw a nationwide rise in quarterly deal announcements and deal values in 2025, with S&P Global reporting that July 2025 had the highest number of bank deal announcements since mid-2021 (26 deals), totaling more than $10.8 billion in deal value.  

Industry analysts are now pointing to private equity interest, better financing conditions, and clearer regulatory expectations as key drivers behind this increasing activity. A recent U.S. M&A overview also suggests that the mid-market segment (deals valued between ~$50M and $500M) could dominate deal flow in 2026, though large strategic transactions remain very much in play.  

TowneBank to Acquire Dogwood State Bank (Closing Early 2026) 

TowneBank, one of Virginia’s most active acquirers, has a major transaction lined up that’s expected to close in early 2026. 

In August 2025, the Suffolk-based bank signed an agreement to buy Dogwood State Bank, a community bank headquartered in Raleigh, North Carolina, in a deal valued at roughly $476.2 million. 

Why It Matters 

• Branch Expansion: This acquisition will add 17 new branches across North Carolina, South Carolina, and Tennessee, significantly expanding TowneBank’s footprint outside Virginia.  

• Scale for Growth: Combined assets for the merged entity will be around $22 billion, positioning TowneBank as a stronger regional competitor.  

• Job Impacts: The combined workforce is projected to grow modestly, signaling integration and operational expansion rather than contraction.  

This deal is a clear example of how a regional bank headquartered in Virginia is using mergers to accelerate growth and extend market reach, particularly in neighboring states. 

Fifth Third Bancorp to Acquire Comerica: A Massive 2026 Close 

One of the most noteworthy bank M&A deals expected to close in 2026 is Fifth Third Bancorp’s acquisition of Comerica Bank, a transaction with far-reaching implications. 

In October 2025, Fifth Third announced a $10.9 billion all-stock deal to acquire Comerica. The transaction is expected to complete in March 2026 pending regulatory approvals.  

Key Details 

• Post-Deal Scale: The combination would make the merged entity among the top 10 largest banks in the United States, bringing together Fifth Third’s strong Midwest presence with Comerica’s footprint in Texas and the Sunbelt.  

• Brand Strategy: Reports indicate that the Comerica brand may be phased out by 2027 as the institution fully integrates.  

• Regulatory Context: This transaction is notable because large bank deals faced greater scrutiny earlier in the decade, but regulatory policy shifts and clearer guidance appear to have smoothed the clearance process.  

While not a Virginia deal per se, the scale and strategic importance of this acquisition underscore the overall direction of the banking sector in 2026; big players are seizing opportunities to consolidate scale and reduce competition. 

PNC Financial Services to Bring FirstBank Into 2026 

Another significant merger expected to wrap up in 2026 is PNC Financial Services Group’s acquisition of FirstBank Holding. 

This transaction, announced in late 2025, values FirstBank at around $4.1 billion and is expected to close in early 2026.  

What This Deal Means 

• Geographic Growth: The acquisition dramatically enhances PNC’s presence in key Sunbelt and mountain-west markets, particularly Colorado and Arizona where FirstBank has a strong retail and commercial banking presence.  

• Strategic Expansion: PNC’s strategy here mirrors national trends where larger banks buy footprint and deposit share rather than purely financial engineering. 

Though this specific deal doesn’t directly involve a Virginia bank, it’s part of the macro trend of large U.S. banking consolidation in markets that Virginia banks may watch for competitive planning. 

Huntington Bancshares to Acquire Veritex Holdings: Closing by 2026 

Huntington Bancshares, a significant regional bank headquartered in Ohio, also has a major deal scheduled to close in early 2026: its acquisition of Veritex Holdings, Inc., valued at around $1.9 billion.  

Strategic Importance 

• Market Penetration: Veritex’s strong presence in Texas adds depth to Huntington’s operations in key high-growth metropolitan areas, including Dallas, Fort Worth, and Houston.  

• Regional Consolidation: This transaction highlights how mid-sized banks use M&A to rapidly enter new regional markets without building branch networks from scratch. 

For Virginia banks watching regional competitive dynamics, this kind of cross-state expansion is an important benchmark. 

Other Deals Expected to Close in 2026 

Beyond the headline transactions above, several smaller and mid-market deals are also lined up to conclude in or near 2026. These include: 

First Community Corp. to Acquire Signature Bank of Georgia 

Announced in July 2025, this acquisition is expected to close in the first quarter of 2026 and reflects ongoing consolidation among regional community banks.  

Citizens Bank of West Virginia to Buy Miners & Merchants Bank 

This transaction (expected to close in the first half of 2026) shows activity in smaller, localized markets that often fly under the national radar but are important for regional customers and employees alike.  

Commerce Bancshares to Acquire FineMark Holdings (Closes January 2026) 

A transaction valued at approximately $585 million expected to close on January 1, 2026, this deal expands Commerce Bancshares’ market in high-growth markets like Florida.  

These deals together show that bank M&A in 2026 will be diverse in size and geographic reach, from mid-market consolidations to transformative deals involving the nation’s largest banks. 

What These Deals Mean for Virginia Banks and Customers 

So what should Virginia banks, customers, and local business leaders take away from this flurry of 2026 activity? 

1. Competitive Pressure and Opportunity 

While not all the deals directly involve Virginia institutions, the competitive landscape is shifting. Larger regional banks (like TowneBank) are actively expanding, and national banks are consolidating in neighboring regions. That means: 

• Virginia banks must assess both acquisition and defense strategies. 

• Building technological capabilities, digital services, and talent will be key to staying competitive. 

2. Customers Can Expect Expanded Services, But Also Change 

When banks merge, customers often gain access to: 

• More loan and deposit products 

• Enhanced online and mobile banking platforms 

• Broader geographic branch networks 

At the same time, mergers can also lead to branch closures or integration-related service disruptions, which is why clear communication from banks to customers is critically important. 

3. Regulatory Climate Matters More Than Ever 

The regulatory environment for bank M&A has shifted in recent years, with some policy reversals and clearer criteria for deal approvals that make 2026 a more navigable year for consolidation.  

Final Takeaways: 2026 is a Milestone Year 

Here’s the bottom line: 2026 isn’t just another year of bank mergers; it’s shaping up to be a milestone year. 

With transactions like: 

• TowneBank’s acquisition of Dogwood State Bank in early 2026 

• Fifth Third’s $10.9 billion acquisition of Comerica 

• PNC’s strategic expansion with FirstBank 

• Huntington Bancshares’ purchase of Veritex 

• Several other regional deals expected to close 

The banking M&A landscape is more active and forward-looking than it’s been in years. 

Whether you’re a banking professional, investor, business owner, or consumer in Virginia, these transactions will have ripple effects, impacting competition, services, branch networks, and the fabric of regional banking.