I. Regulatory Environment Set Stage for Resurgent M&A Activity in 2025 with Bright Outlook for 2026

2025 began with a sense of optimism for a return to a more normalized regulatory environment which — coupled with a continued favorable economic environment — would lay the groundwork for more robust M&A activity for financial institutions. Consistent with our early expectations, the regulatory environment has indeed improved, and there was a spike in M&A activity. Both the regulatory situation and the economy and financial markets remain a work in progress, buffeted by national and global political forces that created periodic volatility and, of late, a sense of uncertainty. Nonetheless, 2025 was a year of major events and progress, with promising early signs for 2026.

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