The Human Edge in Bank Mergers

When community banks merge, the balance sheet tells only part of the story. The real test lies in the people executing the deal. In September 2025, a $26 million acquisition combining Ballston Spa National Bank and the National Bank of Coxsackie created a $1.3 billion institution. Beyond the numbers, teams coordinated client handoffs, aligned back-office systems, and navigated regulatory hurdles. Every action mattered and every misstep could ripple across clients, employees, and operations. The success of the merger depended on the adaptability, collaboration, and judgment of the team members driving it.

A Shifting Landscape

The first quarter of 2025 brought 34 bank deals totaling $1.61 billion, the highest first-quarter value since 2021, according to CBH Insights. Technology costs, geographic expansion, and competitive pressures are pushing community banks toward mergers as a survival strategy. Dealmaking, once reserved for national players, is now a necessity for smaller institutions.

Fitch Ratings highlights a key challenge: attracting professionals capable of managing risk, ensuring compliance, and executing complex plans under tight deadlines. The ability to integrate talent effectively often determines whether a merger delivers on its promise.

Teams at the Heart of Every Deal

Leaders shape outcomes. By fostering clarity, empowerment, and innovation, they align teams around shared objectives, drive collaboration, and make high-pressure decisions with confidence. CBH Insights notes that banks investing in skill development alongside strategic objectives execute deals more smoothly and retain critical institutional knowledge.

Back-office integration, client communications, and regulatory reporting are high-stakes areas where mistakes have immediate consequences. Team members who understand not only their tasks but also the broader impact of their work turn potential friction into seamless execution. Banks that prioritize transparency, coaching, and cross-functional collaboration transform uncertainty into opportunity.

Nate Algood, banking recruitment consultant with The Agency, says success in mergers depends as much on people as it does on planning. “Investing in people is just as critical to merger success as investing in technology or capital, because at the end of the day, it’s the people who make the merger work,” he explains. “The best-laid strategies and systems mean little without a workforce that is informed, engaged, and empowered.”

Culture and Adaptability

Culture is reflected in every email, meeting, and client interaction during a merger. Community banks that treat their teams as active participants embed accountability, adaptability, and empowerment into daily operations. When employees are given the authority to make decisions and the context to understand why those decisions matter, the organization moves faster and responds to challenges with agility.

Algood points out that uncertainty often drives turnover if leaders fail to communicate consistently. “Far too often, I hear from candidates who are open to new opportunities because of the uncertainty that mergers bring,” he says. “The most successful integrations are those where leadership communicates clearly, involves employees in the process, and creates space for questions and feedback. That transparency builds trust and helps teams feel part of the transition, not just subject to it.”

His perspective highlights a practical truth: uncertainty breeds worry, and worry leads to disengagement. When employees lack clarity about the plan or their place within it, assumptions fill the gaps. Open communication keeps teams aligned, reduces uncertainty, and helps everyone move forward with clarity and purpose.

People as the Defining Factor

Integrating human considerations with financial strategy strengthens both. Banks that invest in culture alongside operations anticipate challenges, identify synergies, and maintain client relationships. How teams operate day to day ultimately determines whether a merger simply meets regulatory approval or thrives as a unified institution.

“Mergers can be powerful opportunities,” Algood says, “but only if the people behind them are supported every step of the way.”

Sources

Ballston Spa National Bank and National Bank of Coxsackie merger announcement. (2025, September 25). Times Union. https://www.timesunion.com/business/article/ballston-spa-national-bank-acquiring-national-21065149.php

Bank M&A Trends and 2025 Outlook. (2025, June 16). CBH Insights. https://www.cbh.com/insights/reports/bank-ma-trends-and-2025-outlook/

Community Banks to See Improved M&A, Capital Markets Activity in 2025. (2024, December 17). Fitch Ratings. https://www.fitchratings.com/research/banks/community-banks-to-see-improved-m-a-capital-markets-activity-in-2025-17-12-2024