What's driving activist investors, and how banks can be ready

• Key insight: Shareholder activism at banks is expected to continue at a brisk pace throughout the remainder of this year.
  
• What's at stake: Activists use a variety of tactics to implement managerial and operational changes at banks. In some cases, they threaten to engage in proxy contests, though in many instances, the banks and activists reach a settlement before the issue goes to a vote.
  
• Forward look: Industry observers will be monitoring for a resumption of public-pressure campaigns against banks, similar to what took place last fall and winter.

Shareholder activism at banks is not expected to die down in the latter part of 2026, as some investors continue to use their ownership stakes to push for managerial and operational changes.

Public demands by activists escalated during the second half of last year, when several regional banks were targeted by a South Florida-based investment firm whose demands ranged from  revising capital priorities to swearing off mergers and acquisitions to ousting the CEO. The activist firm, HoldCo Asset Management, called for some of the targeted banks to sell, and in one case, it did: Comerica in Dallas was ultimately acquired by Ohio's Fifth Third Bancorp earlier this year.

Those who track shareholder activist trends, and one activist who went public this summer with a list of demands for an Alabama community bank, say the level of activity seen last fall could repeat itself. The regulatory changes put in place by the Trump administration provide a favorable environment for getting M&A deals done at a speedier pace, even for larger transactions. And a number of bank stocks continue to trade below fair value, making them attractive targets for acquisitive banks.

"The setup is not a whole lot different from what it was last year," said Jason Blumberg, founder of Blue Hill Advisors, a bank investment and advisory firm in Hudson, New York, that's putting public pressure on United Bancorporation of Alabama. "Given that backdrop, it's still ripe for activism."

Over the years, activist shareholders have called for a spectrum of changes at banks, involving governance, personnel and strategy matters. In 2025, 23 U.S. banks were targeted by activists, down from 25 in 2024, according to Diligent Market Intelligence, which provides data and insight on shareholder engagement and corporate governance issues at companies around the world. Last year, the targeted banks received a total of 55 demands, including nine calling for a sale and nine related to governance.

In July of last year, Comerica found itself on the receiving end of major demands. In a 52-page report, HoldCo accused the regional bank of not taking responsibility for "disastrous decisions" related to interest-rate risk and other blunders by the bank's management. HoldCo pushed for Comerica to sell itself and called out three potential buyers, including Fifth Third in Cincinnati. Fifth Third announced a deal to acquire Comerica less than three months later, and then closed the transaction in less than four months.

The number of U.S. banks targeted this year could surpass last year's total. As of Aug. 3, 20 U.S. banks found themselves in activists' crosshairs, and the list of demands was 37, including 11 tied to governance, according to Diligent. Seven of the demands related to the appointment of new personnel, while four called for returning cash to shareholders, and one sought a bank sale.

The latest data on activist investors' activity somewhat collides with investors' broader view on banks, which are "doing fairly well" this year, according to Josh Black, editor in chief at Diligent Market Intelligence. 

"Performance is fairly strong, both earnings and stock price, and that's reflected in [shareholder support for] say-on-pay and board directors," Black said. "Investors are generally quite happy."

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Still, activists are expressing dissatisfaction with how certain banks are doing business. Blue Hill Advisors, along with Merion Road Capital Management, issued a public letter in July, urging the board of directors of the $1.5 billion-asset United Bancorporation of Alabama to take specific steps to reduce its excess capital and lower its expenses. The activist investors also pressed the bank to add "one or two independent directors with deep M&A and capital markets expertise" who could help the bank deploy some of its excess capital and "serve as a powerful catalyst to restore investor confidence." 

Blue Hill Advisors and Merion Road Capital Management — which together own 2% of  the Alabama bank's shares — argued that the company is underperforming. 

Michael Vincent, the bank's president and CEO , said in a press release that its board "takes a highly disciplined view of capital allocation that balances returning funds to stockholders, reinvesting in operations and being able to act nimbly if and when opportunities arise for inorganic growth."

He added, during the bank's second-quarter earnings call this month: "We recognize that the bank has strong capital ratios, and we certainly have opportunities that are frankly far and wide … I need to balance long-term shareholder value. I need to balance that with continued reinvestment into the company so we can remain viable and relevant going forward."

Blumberg said this week that he will continue trying to have conversations with United. The two sides started talking several months before he opted to air his concerns publicly, he said.

"We want to work constructively with the management and the board, but if need be … we are open to any of the different tools that, as shareholders, we can exercise, including nominating directors," Blumberg said. "Anything is on the table in terms of getting the right outcomes."

Blue Hill Advisors' portfolio includes 10 to 15 banks, and the firm holds no more than 5% of common stock in any of them, with the majority falling in the 1%-2% range, Blumberg said. As for whether Blue Hill will go public with its concerns about other banks, it could happen.

"There are situations we're involved in now where, I'm afraid to say, we're being slow-played, or they may hope that we go away," Blumberg said. "If that continues, then we may have to escalate."

In addition to United, Eagle Bancorp in Bethesda, Maryland, faced pressure this year when an activist investor called for a board shakeup, including replacing the board chairman. The $10.5 billion-asset Eagle, which had dealt with losses related to its commercial loan portfolio and had been hunting for a new CEO, announced in May that it hired Stephen Curley, a former executive at Western Alliance Bancorp., to serve as its next CEO.

After publicly targeting a number of regional banks last year, HoldCo has been quiet. In February, it dropped its threats to pursue proxy fights at Cleveland-based KeyCorp and Eastern Bankshares in Boston. HoldCo had accused both banks of overpaying for acquisitions and diluting shareholder value. It had also called for Key to oust its chairman and CEO, Chris Gorman.

The number of formal activist campaigns against banks and other companies listed on the Russell 3000 Index declined during the first six months of the year, according to data from The Conference Board, a nonprofit business think tank, and ESGAUGE, an analytics firm. Through June, there were 95 formal campaigns, down from 254 during the same period in 2025.

Across industries, there's been a noticeable evolution in tactics and strategy when it comes to shareholder activism, said Ariane Marchis-Mouren, a senior researcher in corporate governance at The Conference Board. A December 2025 report from The Conference Board and ESGAUGE found that activist investors launched 57 proxy contests that year against Russell 3000 companies, the highest number since 2018.

Still, the vast majority of those 57 campaigns did not proceed to a vote, according to the report. In some cases, public companies and activists may reach settlements. In others, banks and activists may work behind the scenes to reach agreements before the activists go public.

Banks and boards not currently being targeted by activists shouldn't infer that overall activist activity has died down, Marchis-Mouren cautioned. She expects activity to remain steady.

"Fewer public campaigns shouldn't give a false sense of security," she said. "The right response is to always be prepared year-round, to understand your base and to explain early the board's governance decisions clearly. It's more important now because the risk might be even higher."