Uncertainty surrounding the regulatory approval process and overall economic conditions will act as a brake on bank mergers and acquisitions in 2023, says John Corbett, CEO of Florida-based SouthState.

As deposits grow scarcer, the Stamford, Connecticut-based bank's acquisition of interLINK earlier this month promises to yield billions of dollars in core funding it can put to work paying down borrowings or purchasing securities, CEO John Ciulla says.

With the $7.5 billion acquisition, the Minneapolis bank bolstered its customer base in the nation's most populous state by more than 1 million. Earnings accretion from the combination could offset slower loan growth this year.

The loan-growth projections are for Columbia Banking System itself, before the Tacoma, Washington, bank officially merges with Umpqua Holdings. The $5 billion deal is scheduled to close Feb. 28.

Unrelenting pressure to improve efficiency could keep bank merger activity steady or even accelerate it despite several economic and regulatory factors except for one — credit quality, say two veteran Piper Sandler dealmakers.

CEO Bill Rogers stopped short of confirming or denying speculation that the bank is seeking a buyer for part of the unit.

The $104 million-asset Finex Credit Union in East Hartford plans to partner with the $52 million-asset First Connecticut Credit Union in Wallingford.

The Canadian banking giant also announced that Nandita Bakhshi, the San Francisco bank's CEO, will join the board of directors of its U.S. holding company and serve as a special advisor on integration.

Bank of Montreal has received approval from the the Federal Reserve to acquire San Francisco-based Bank of the West, a combination that will create the 15th-largest U.S. lender.

JPMorgan Chase Chief Executive Jamie Dimon called the firm's botched acquisition of the college financial-planning website Frank "a huge mistake" and vowed to share takeaways at a later date.