CNBC names regional banks that may interest Citigroup and Wells Fargo
Citigroup and Wells Fargo have room below the U.S. cap of 10% of national deposits, which could potentially allow them to acquire a large regional bank. As CNBC Top News reports, following the easing of regulatory barriers, large banks may once again consider buying lenders with assets exceeding $100 billion.
JPMorgan Chase and Bank of America cannot enter into such deals because they already hold more than 10% of national deposits. Investment bankers, advisers and investors believe that Citigroup and Wells Fargo have sufficient room below this limit for a major acquisition.
Potential targets
CNBC identifies five regional banks that, based on a number of criteria, could be suitable targets for one of these buyers: Fifth Third, Huntington, Citizens, KeyCorp and Regions. The criteria include the bank's size, the geography of its branch network, the quality of its deposit base and business compatibility.
For Wells Fargo separately, Zions could potentially be a suitable option, as it has client relationships in fast-growing western states. For Citigroup, CNBC names First Horizon, which is present in the fast-growing states of the U.S. Sunbelt, as a possible option.
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Citigroup has about 650 branches in the United States, so a large acquisition could expand the bank's access to cheaper funding. Wells Fargo already has a substantial branch network, and such a deal could provide additional scale and opportunities to reduce costs.
Bank positions and the deal market
Citigroup CEO Jane Fraser said in April that the bank's priority is organic growth rather than deals. Bloomberg News reported in March that Citigroup executives had allegedly discussed acquiring a large regional lender to strengthen the deposit base. At the time, Citigroup called this information “baseless speculation.”
Wells Fargo CEO Charlie Scharf said in a March letter to shareholders that the bank should consider ways to increase the value of its franchise, including through mergers and acquisitions. At the same time, he stressed that Wells Fargo does not feel pressure to make a deal, but will consider such an opportunity if there is an attractive offer.
According to EY, the value of bank mergers in North America in the first six months of 2026 more than halved to $30.1 billion compared with the same period of the previous year. CNBC notes that bank profits and share prices are rising, making it more difficult for potential sellers to agree to a deal.
