PNC, Regions, Citizens Executives Say M&A Could Distract
Executives from PNC, Regions, and Citizens Financial Group said at a Barclays investor conference that they are avoiding major bank acquisitions to
PNC’s chief financial officer said the bank would pass on any acquisition that could impede its artificial intelligence priorities, speaking at a Barclays investor conference on Monday. Rob Reilly emphasized that missing out on AI’s potential would be a greater cost than pursuing a large deal. He noted that while PNC remains capable of pursuing another acquisition for scale, it would not do so at the expense of its AI objectives.
Similarly, Regions Financial Corporation’s CEO John Turner stated on Tuesday that pursuing a merger or acquisition could divert attention from the bank’s ongoing deposit system conversion, which is targeted for completion in 2027. Turner said any distraction to teams working on that project would pose risks to both the company and any potential acquisition target. He added that Regions is not interested in depository M&A today or tomorrow, though it may regain flexibility after the conversion finishes.
Citizens Financial Group’s CEO Bruce Van Saun also said his company does not want to get distracted by M&A while executing its Reimagine the Bank initiative and growing its private bank. Speaking at the same Barclays conference on Monday, Van Saun said he sees no available target that would make a dramatic difference if acquired.
Bank M&A expectations were high for 2026 due to a more favorable regulatory environment, but larger transactions have remained infrequent. The year’s biggest deals so far include Santander’s $12.3 billion purchase of Webster Bank, announced in February, and EverBank’s $3.9 billion tie-up with WaFd, announced this month.
Regions’ Turner and M&T CEO René Jones noted that the pool of potential bank sellers has not been as large as some expected early in the second Trump administration. Jones said the current regulatory climate may encourage buyers to seek deals, but it also makes it easier for targets to operate independently, reducing their urgency to sell. He added that many executives may be waiting to see how midterm elections affect stock prices before deciding to sell.
As the end of President Donald Trump’s term approaches, Turner said banks may rethink their positioning as buyers versus sellers. Bain & Company Partner Joe Lischwe attributed the lull in bigger-bank deals to macroeconomic concerns but expects consolidation to continue, predicting one to three banks will reach $1 trillion in assets by 2030. He said the 17 banks holding over $10 billion in excess capital are most likely to pursue acquisitions.
Despite their focus on organic growth, executives acknowledged they monitor the market. PNC’s Reilly said that if a possible deal arises, ‘of course we would look at it, and so would everybody else, even if they tell you that they wouldn’t.’ However, he added that current valuations of potential targets are very high, making the bar to clear a deal difficult.
Citi CFO Gonzalo Luchetti and Wells Fargo CFO Mike Santomassimo downplayed the idea of mega-bank acquisitions but suggested larger banks might pursue smaller deals to add capabilities. Regions CFO Anil Chadha described bolt-on acquisitions, such as the bank’s recent purchase of Frazer Lanier, as non-glamorous but valuable for diversifying revenue streams, saying the bank will continue such deals.
Zions Bancorporation was noted as an outlier, with CEO Harris Simmons saying the lender is well-positioned to acquire larger community banks at the right terms. Simmons said Zions would have been interested in Colorado’s FirstBank, which PNC bought for $4.1 billion, but not at that price. He added that a deal of that size is something PNC can digest in a way that a smaller bank like Zions cannot.
