Acquire or Be Acquired serves as a vital hub for banking professionals eager to share insights and strategies that will shape our industry’s future.
As we glide into February, we once again find banking’s leaders engaged in their daily rituals — working hard to protect their businesses while hunting for fresh ways to outsmart their ever-expanding competition. As in past years, many of our industry’s outcome-oriented executives descended on the Arizona desert to escape the chills of winter for the warm embrace of Bank Director’s annual Acquire or Be Acquired Conference.
Over the conference’s two and a half days, we sensed a shift towards more strategic, compliant and resource-efficient models as the banking and fintech sectors continue to evolve. Now, we like saving money like everyone else, but for us, efficiency isn't just about cutting costs; it’s about nurturing a culture of creativity and productivity while being responsible stewards of capital.
GonzoBankers, here are several themes and issues that emerged from this year's AOBA… served up as a playful field guide for those who missed out on this year’s fun.
Rise Of the Machines
Just like every other banking conference we’ve been to, there’s a shiny object that gets folks talking. And so it was, hearing that for every $1 a company invests in Gen AI, companies across all industries are realizing an average return of $3.70, per Microsoft‘s Falguni Desai. That said, waking up on the second day of the event to see stocks tumbling due to DeepSeek, a Chinese AI startup that's just over a year old, reinforces the need to stay focused on what’s happening, what we can control, and what we need to prepare for.
Where’s the Sewing Kit
Banking is becoming increasingly seamless and embedded in daily activities. Walking the halls of the JW Marriott, you’d be hard-pressed to miss:
- Banking services integrated into non-financial apps and platforms
- Voice-activated banking through smart assistants
- Biometric authentication replacing traditional passwords
As our Chief Snarking Officer (er, Research Officer and author of the just-released What’s Going On In Banking report) Ron Shevlin recently wrote, digital banks and fintechs captured nearly half (44%) of all new checking accounts opened in 2024. Combined, mega banks (Bank of America, JPMorgan Chase, Citi, and Wells Fargo) and regional banks ($100 billion to $1 trillion in assets) accounted for 43% of all accounts opened.
Say Yes
One of Monday’s highlights was the Women in Leadership Luncheon emceed by Bank Director CEO Michelle King. Susan Holliday, chair of the board, Five Star Bank; Rose McKinney-James, director, Pacific Premier Bancorp, Inc.; Maria Tedesco, president & COO, Atlantic Union Bank; and Kathleen Woodard, head of banking industry advisory, Americas, Microsoft shared their professional challenges, opportunities and lessons learned to a packed room of women and men.
Kudos to Maria for sharing the “ally-ship” story from her time at Citizens Bank. It was wicked awesome hearing these leaders encourage women to take greater risks, advocate for themselves, and be brutally honest with one another. Oh, and to say yes when unexpected opportunities arise.
Now That’s a Knife
Last October, JPMorgan CEO Jamie Dimon criticized several U.S. financial regulatory initiatives, including interchange fee rules established by the so-called Durbin Amendment and the Consumer Financial Protection Bureau's open banking rule.
At the time, American Banker noted that many banks were unwilling to fight with regulators, thinking they would just come after them and punish them more. To that, Dimon reportedly said, “We don't want to get involved in litigation just to make a point, but I think if you're in a knife fight, you better damn well bring a knife, and that's where we are.”
That go get ’em spirit was on full display in Arizona. While many expressed giddy optimism for scaled-back regulatory oversight and regulatory burdens, we noted various remarks about the continued need to adapt to enhanced cybersecurity and data privacy regulations, evolving frameworks for AI governance and ethics, and increased scrutiny on governance practices and reporting.
Consider that the flip side of the coin.
All Hail Travis
The crowd was especially interested in hearing about the new tone at the FDIC straight from acting Director Travis Hill's Zoom-delivered mouth. Hill pleased the crowd by emphasizing the priority of speeding up and simplifying merger approvals, noting it doesn’t work for the government to try to hold back the necessary market force of consolidation. Hill also expressed interest in seeing more de novo banks formed and finding modern ways to accommodate tokenization and crypto in the financial system.
It's a Buyer’s Market … But the Numbers Are Thorny
Hovde Group's Curtis Carpenter provided detailed data on the low volume of bank deals in the past three years and the huge backlog of bank sellers that should clear the market in the next few years. While buyers are positioned with more leverage, making deals work given balance sheet, capital, and currency challenges still require deep strategic discussions between two institutions contemplating a deal.
She Blinded Me With Science
The continued influence of technology on the banking industry and competition was noted in many areas of the program. Jack Henry’s Dave Foss noted from the main stage, “You are a high-tech operation today whether you like it or not.” Interestingly, while all bank leaders see technology moving their cheese significantly, a Bank Director survey noted only 21% of banks formally measure their ROI on technology investments — a huge gap given bank earnings and efficiency pressures.
The Chronicles of Scale
The continued debate regarding "scale vs. smarts" was brought up in many sessions. Interestingly, the regulatory milestones of $10 billion, $50 billion, and $100 billion were noted as key moments where banks need to bust through new compliance burdens with growth. Veritex Community Bank CFO Terry Earley shared his own organization's journey, “If you make it to $10 billion, you have to keep going fast to $20 billion.”
Focus, Focus, Focus
While the industry is consolidating, it was clear the crowd sees a role for large national banks as well as regional and niched community banks. The important factor is discipline in allocating resources and executing with focus on a clear strategy. “You have to figure out where your team thinks you have the right to win and put your money there,” advised Synovus CEO Kevin Blair.
Don’t Drop That Shoe
For yet another year, credit quality remains a wild card to start the year. As KBW CEO Tom Michaud remarked, “When credit shows up, it shows up quick. It’s not a thermostat, it's an ‘on/off’ switch.”
In Search of the Perfect Slide
Last year, it was the “shoots and ladders” slide from Tom and the KBW team that took home this coveted prize; this year, we had a few contenders.
Ultimately, Encore Bank's Erin Simpson won us over with her gritty one-slide timeline/roadmap on how Encore has gone after specialty deposit verticals (for fee income too) in title companies, 1031 exchanges, and associations, working with fintech providers Q2, Qualia, TruStage, Core10 Accrue, and SoftPro.
The Truth Hurts
Half-joking funny moment: When Bank Director editor Naomi Snyder asked a regional bank CEO panel what surprised them about being a CEO, Umpqua CEO Clint Stein noted how needy board members are.
Tone Loc Would Be Proud
The industry is witnessing a new wave of mergers and acquisitions … so as more and more banks drop the Let’s Do It beat, we noted:
- Increased consolidation among mid-size banks
- Technology-driven acquisitions to enhance digital capabilities
- Cross-industry partnerships and acquisitions
- Increased focus on economies of scale to manage regulatory costs
Naturally, earning the right to remain independent and acquisitive had its moments in the sun.
BOGO
Nathan Baumeister, CEO of ZSuite Technologies, pointed out in a Small Business session that small business focus is a buy one, get one (BOGO) because, when you get the small business, you also get the consumer business.
Mastercard's Ginger Siegel pointed out how many consumer portfolios were already laced with business accounts where banks are needlessly leaving money on the table.
NYMBUS' Jeffery Kendall pointed to how banks (even entrepreneurial startups and sidecars) routinely under-market their business services like they expect people will just be attracted to great products/brands without aggressive marketing.
Lead By Example
Abrigo CEO Jay Blandford noted that good, dedicated leaders must lead small business as “side project focus leads to side project results.” Apiture's Daniel Haisley pointed out that banks need good, dedicated data people SOMEWHERE. It can’t just be “we don’t want to work with marketing on this.”
The fight must happen to sort out who in the bank can/will be strong in data. Veritek’s Earley pointed to his team of 8-10 data experts spinning up his SAS/PowerBI outcomes. Data-driven decision-making at its finest.
Best Swag
Last year, Baker Hill showed up with “either the most brilliant — or insane — swag of the conference” per Sam Kilmer. As many of us have and love dogs, we’re going with CSI's dog-bone-caribiner-necklace-for-your-dog-to-carry-it’s-own-doggie-bags. Nicely played, Tara Schultz and team.
#Gratitude
The Cornerstone AOBA team of Quintin Sykes, Mary Eyre, Ron Shevlin, Stacey Bryant, Eric Weikart, Sam Kilmer, Ryan Rackley, Steve Williams and I thank Terry Earley for talking about Smart(er) Bank Performance with Eric on Monday.
We also salute our friends at Bank Director for yet another exceptional event. It’s clear that this conference serves as a vital hub for banking professionals eager to share insights and strategies that will shape our industry’s future. Way to go. We look forward to Feb. 1-3, 2026, when #AOBA26 returns to the JW Marriott Desert Ridge.
GonzoBankers, here’s to a year of growth, innovation, and perhaps a little mischief along the way.