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Activists typically improve a company's stock performance — and can produce "dramatic, excess returns" when they have specific demands, says Josh Hinkel, a partner with Bain & Co.

Establishing an active dialogue with major shareholders can help banks get ahead of activist campaigns, according to Josh Hinkel, a partner with Bain & Co.

Though bank analysts like Matthew Schultheis generally expect M&A activity to continue at a brisk pace for several years to come, stock market volatility could prove to be an issue for potential dealmakers in the near term.

Though bank analysts like Matthew Schultheis generally expect M&A activity to continue at a brisk pace for several years to come, stock market volatility could prove to be an issue for potential dealmakers in the near term. With a lower stock price, buyers may end up not being able to pay as much as sellers now expect, says Schultheis, who covers the financial services sector for Boenning & Scattergood. Here’s his outlook on bank M&A, including the number of deals he anticipates will happen this year and whether big banks might be among the buyers.

To brace for stress in the energy sector, Cullen/Frost Bankers in San Antonio, Texas, recently boosted its reserves on oil-related loans to 3% — while competitors like Hancock Holding and Wells Fargo have set even higher reserve levels. "The mix of loans is very different," says Dick Evans, chairman and CEO of the Texas bank.