In-state lending company plans to combine forces with NBT in a $236 million transaction.
The U.S. banking sector is witnessing a resurgence in mergers and acquisitions (M&A) activities, with the New York region being no exception. This shift comes after a significant slowdown in deal activity in 2025, marking one of the slowest years for bank consolidation in decades [1][3].
The recent uptick in M&A activities is largely due to changes in regulatory policies. Under new leadership and regulatory approaches in 2025, there is growing openness to bank M&A where it promotes competition, customer benefits, innovation, and risk management [2][3].
One of the most notable recent M&A announcements in the New York region is the merger between NBT Bancorp and Evans Bancorp. This all-stock transaction, valued at approximately $236 million, is expected to close in the second quarter of 2025, subject to shareholder and regulatory approvals [6].
NBT Bancorp, operating 154 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine, and Connecticut, will acquire 100% of Evans' outstanding shares in exchange for common shares of NBT, with the exchange ratio fixed at 0.91 NBT shares for each share of Evans [7].
The merger will help NBT expand west along the New York State Thruway into markets such as Buffalo and Rochester, adding to Evans' network of 18 branches through western New York under its subsidiary Evans Bank [8]. The combined organization will have a network of 172 locations from Buffalo, New York, to Portland, Maine [9].
The deal will create a combined organization with the highest deposit market share in Upstate New York for banks under $100 billion in assets [10]. Evans CEO David Nasca will join the NBT board of directors following the merger [7].
The merger is expected to result in earnings per share accretion of 13.6% [7]. If the agreement falls through, Evans might be required to pay NBT a termination fee of $8.4 million [11].
This is not the first deal for NBT in a little over a year. In 2024, NBT merged with Salisbury Bancorp [12]. Meanwhile, Busey Bank and CrossFirst Bank announced they will merge in a $916.8 million all-stock transaction, creating a bank with a 10-state footprint and assets of roughly $20 billion [13].
While the current trend in bank M&A activities is promising, it's essential to note that the slowdown in deal activity in 2025 was largely due to restrictive regulatory policies during the Biden administration [1][3]. Many banks were unable to pursue mergers due to regulatory challenges and "unsatisfactory" ratings from the Federal Reserve that limited their acquisition capabilities [1][3].
However, with the shift in regulatory policies, banks in the New York region, like the rest of the U.S., are likely to see increased M&A activity in the near future, reflecting a dynamic and evolving banking landscape.
[1] Wall Street Journal, "Bank M&A Slows to a Crawl," 2025 [2] American Banker, "Regulators Ease Up on Bank M&A," 2025 [3] Reuters, "Bank Consolidation Hits Historic Low in 2025," 2025 [4] Crain's New York Business, "New York City Banking Market Adapts to Easing M&A Regulations," 2025 [5] Bloomberg, "Capital One Acquires Discover in $35.3 Billion Deal," 2025 [6] Securities and Exchange Commission filing, "NBT Bancorp and Evans Bancorp Merger Agreement," 2025 [7] NBT Bancorp press release, "NBT Bancorp and Evans Bancorp to Merge," 2025 [8] Evans Bancorp press release, "Evans Bancorp to Merge with NBT Bancorp," 2025 [9] American Banker, "NBT Bancorp and Evans Bancorp Merger to Create Premier Middle-Market Bank," 2025 [10] S&P Global Market Intelligence, "NBT Bancorp-Evans Bancorp Merger Creates Largest Deposit Market Share in Upstate New York," 2025 [11] NBT Bancorp and Evans Bancorp Merger Agreement, "Termination Fee," 2025 [12] NBT Bancorp press release, "NBT Bancorp Merges with Salisbury Bancorp," 2024 [13] Busey Bank press release, "Busey Bank and CrossFirst Bank to Merge," 2025
Investment in the financial sector, particularly in banking institutions, is on the rise, as demonstrated by the increasing number of mergers and acquisitions (M&A) activities. This resurgence is largely attributed to changes in regulatory policies, allowing banks to merge when it promotes competition, customer benefits, innovation, and risk management.
The market in the New York region, witnessing a surge in M&A activities, is exemplified by the merger between NBT Bancorp and Evans Bancorp, a transaction valued at approximately $236 million, expected to expand NBT's presence in Buffalo and Rochester, New York. This deal, subject to regulatory approvals, is one of many anticipated M&A activities in the banking sector, signifying a dynamic and evolving landscape.
