Mayo see 'unique window' for bank M&A to Comerica Deal

(Bloomberg) -The largest US bank agreement of the year arouses a wave of speculation about further consolidation among lenders, with an increasingly friendly regulatory climate seen as the way for more compositions. The fifth third bancorp agreed to Comerica Inc. For about $ 11 billion to buy stock to create the ninth largest bank in the US. For veteran banker Mike Mayo, this is just the beginning: The Wells Fargo & Co. -Analyst over the next 12 months is a unique opportunity for banks who want to pursue the mergers of size. ” Industry experts expected a bakkie in Bank M&A, and expected local lenders to use a more benign regulatory position under President Donald Trump and smoother antitrust approval. It is a pivot of the Biden Administration’s more rigid attitude, and paves the way for a revival in M&A activity that has cooled in the aftermath of the 2023 failures of Silicon Valley Bank and others in the sector. “The shackles are being collected from banks to act more in the interests of shareholders,” Mayo said in an interview, referring to the regulatory background. “Banks can dream the dream for potential acquisitions.” Mayo’s team, which is analyst Timur Braziler, cited Bank United Inc., First Horizon Corp. and Banc of California Inc. include as possible takeover targets. All three rose in trade on Monday, with the KBW Regional Banking Index rising to 2.6%. For Bloomberg intelligence, analyst Herman Chan, it is likely that the transaction trend plays in certain geographical areas. “The theme of larger regional halls that are higher – Growth markets in Texas and the Southeast messenger good for smaller banks that work in those regions,” he said. In an interview with Bloomberg TV earlier Monday, Chan Keycorp and M&T Bank Corp read: Read: Regional banks are ripe for mergers, as DC gets hot for consolidation such as Mayo, Baird analyst David George named Memphis-based First Horizon as a top takeover. Similarly, the research team at Stephens Bank, which also has Tupelo, Mississippi-based Cadence Bank on its list among lenders in the south. Elsewhere, Stephens Webster Financial Corp. and Flagstar Financial Inc. cited as potential targets under banks in the mid-Atlantic and northeastern region, as well as Wintrust Financial Corp in the Midwest region. Synovus Financial Corp. this year announced a sale to Pinnacle Financial Partners for about $ 8.4 billion at the end of July. Earlier in 2025, Firstbank Holding Co. Also a combination with the PNC Financial Services Group announced, while Pacific Prime Minister Bancorp agreed to merge with Columbia Banking System. Investors listen to M&A leaders during the next few weeks during earnings calls. JPMorgan Chase & Co. will kick things off on October 14. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP