Though not fiscally apocalyptic, there might be angst when a business owner finds out that their bank has been acquired or is merging with another institution.
On some level, the same can be said for a business bank that is acquiring another bank. Questions will abound for business owners: What does it all mean for me, and for my employees? Will the business have access to the capital it needs?
Those questions may become more common. About 5% of banks nationally were sold in 2025, compared with 2.5% during the pandemic, according to a 2026 white paper from Wilary Wynn, which provides fair‑value determinations for bank acquisitions.
Travis Froze, president of the Northeast Wisconsin market at First Business Bank, says there are about 4,000 independent banks throughout the United States. There are between 100 and 200 bank transactions or mergers that happen annually.
“I would say the majority of those are smaller banks being acquired by other small banks. With banking and regulation, there is a sweet spot where maybe getting over $1 billion or $2 billion in assets really helps with the overhead costs.
“So if you are a $250 million bank or a $500 million bank,” he says, “those fixed costs related to regulation can be quite substantial because of your size. As you get bigger, it’s easier to absorb those fixed costs.”
That’s a big part of what’s occurring, Froze says, but there’s more than meets the eye.
“You purchase somebody, you’re able to create some synergies,” he says. “You can strip out some of that overhead and hopefully you keep your revenue the same, therefore you drop more money to the bottom line.”
Michael Waters, partner with Capital Connection LLC in Appleton, says consolidation in the banking industry isn’t slowing down anytime soon.
“Will mergers and acquisitions continue?” he questions. “Absolutely, 100%. This won’t go away. You look at all the community banks that have been absorbed. Some larger regional banks have been successful at mergers and acquisitions.”
The strategic reasons for a merger may be clear to the institutions involved, but for their business banking clients, the questions remain.
Paul Northway, president and CEO of American National Bank‑Fox Cities, which is in the process of being acquired by Landmark Credit Union, says his team has been fielding such questions from his business customers.
“It’s simple things … ‘Are we going to the same building?’” Northway says. “‘Will my accounts be the same? Will I still walk up to the same teller line?’ If anything, it’s created an opportunity to talk about what will change.”
What changes and what doesn’t?
Sure, change can be scary. But as far as Northway is concerned, mindset is crucial in handling a merger or acquisition, however unexpected.
“The client should be thinking, ‘I’m working with them because of a great relationship, and the relationship doesn’t have to change because the name is different,’” he says, adding that for his bank’s example, the benefits will be many for business owners.
“We have a legal lending limit of $10 million, and once we complete our transaction with Landmark, we’ll be in excess of $50 million,” he says.
Now look at the matter from Landmark’s perspective through the lens of president and CEO Tim Mackay.
“I think that most businesses, I don’t think they celebrate, but I don’t think they panic, either,” Mackay says. “Most of their first reaction is uncertainty. I think they immediately start asking questions … ‘Will my day‑to‑day banking change? Will I still have access to the people that know my business? Will this impact my ability to borrow money and grow?’”
Mackay says most business owners will likely experience some form of consolidation or ownership change with their financial institution at any given point. But that doesn’t automatically mean they need a new business bank.
“In the case of us acquiring American National Bank‑Fox Cities, the acquiring institution brings additional products, larger lending capacity, new technology and maybe even expanded expertise that can actually benefit the business,” Mackay says.
In Landmark’s case, the focus is working to maintain relationships.
“I think it’s extremely important,” Mackay says. “You’ve built relationships with a relationship manager, maybe with some of the decision makers, and certainly I think it’s reassuring to know they are still there.”
But that’s not always the case, of course. Bankers sometimes retire, or simply move on. That means the onus is on an acquiring institution like Landmark to communicate what is happening and make sure their “new” business customers understand who they will be working with — whether that’s the same person or someone new.
“Knowing, then, who that person is, is very important,” he says. “But we try very hard to keep it the same person, because in business it’s about relationships.”
Onboarding is crucially important to maintain that continuity. The best example for Mackay, of course, is Landmark’s acquisition of American National Bank‑Fox Cities.
“When a business transitions to a new financial institution, I think success really comes down to preparation, communication and relationship management,” he says. “We assign dedicated points of contact, so the client knows exactly who to call. We try to develop a structured transition plan.”
He says that includes communicating early and often with clients about any upcoming milestones, carefully managing their account and data conversions to minimize disruption, training them on technology to which they might not have previously had access, and conducting ongoing check‑ins before, during and after the merger or acquisition.
Multi‑layered approach
Mike Daniels is chairman, president/CEO, and a director of Nicolet Bankshares, Inc., and Nicolet National Bank, which he co‑founded in 2000. Nicolet Bankshares completed its merger with Iowa’s MidwestOne Financial Group in August. So he’s well aware of the impact on business owners.
“Change is uncomfortable,” he says. “Fear of the unknown is the primary concern for business customers.”
Like Landmark’s Mackay, Daniels says Nicolet takes a multi‑layered approach with customers during an integration.
“We work with the relationship people at the bank we’re acquiring to make sure they understand the process of the integration,” he says. “We want them to be the first point of contact if customers have questions or concerns.
“We also make sure that the support teams, including call centers, have the information needed to help customers with questions,” he says. “We try to keep things as simple as possible when it comes to how we communicate, like taking out all of the industry jargon. Everything we do when it comes to integration is looked at through the eyes of the customer, and how we can help make the transition as seamless as possible.”
Change. It’s difficult in any situation, agrees Froze.
“Most people have a tendency to resist change. Business likes to work in certainties. They like the status quo. When things are changing, they can create a lot of unknowns of what they are going to do.”
Like Daniels, face time for a business owner with key personnel from the acquiring bank often wins the day. It’s a team concept, he says.
For example, Froze says his bank wants clients to meet the CEO and the chief client officer. It brings in new tech experts and loan structuring personnel.
“We utilize that team and it’s an ongoing process,” he says. “We tend to ask a lot of questions.”
Have a Plan B or Plan C
But there is another side of this entire question of mergers and acquisitions. Especially if a client’s business — which may have been working for years with the bank being acquired — isn’t a fit for the acquiring bank.
Waters says having a backup plan, a Plan B or even a Plan C, is often prudent.
“You should get a feel for what to expect,” Waters says. “Sometimes you get a comfort level, but maybe the acquirer hasn’t done many acquisitions before. The execution could be different than what the banker says to expect.
“Sometimes an acquisition is unique. Certain lines of businesses don’t jibe with what the acquirer wants to do long‑term. These things are tough to predict, but sometimes it’s a bank that isn’t looking to be acquired.”
That’s to say there are situations where an acquiring bank won’t work with a client’s business. Thus, the need for a backup plan — but a little research is a good idea to find out the acquiring bank’s history with acquisitions. Also, simply listen to the communications.
“‘We’ll try to work with you’ … that would be a bit of a red flag to the business owner,” Waters says. “The larger bank might want to be accommodating, but usually it doesn’t work. The larger the institution is, the less customization is possible or permitted.”
A business owner shouldn’t sit on their hands, he says. It makes sense to talk to a bank they know does business with its industry and business size.
Froze notes that a lot of times, businesses whose banks are getting acquired typically have more concerns than those whose banks are acquiring another institution. Still, it’s best to be armed with key questions and remain even‑handed. In other words, don’t let the paranoia horse escape the barn.
Be cool. Or take Mackay’s advice.
“Don’t panic,” he says. “Be curious. What does this institution bring?”
