Investment activity in bank branches has accelerated to this point in 2026

Highlights:

• While national banks continue to sell at the highest clip, both super regional and community banks have recorded an increase in activity. Year to date, super regional banks account for 35% of the sales mix, up from 28% last year, while community banks made up more than 25% of transactions, exceeding the 2025 figure of 20%.
• Bank branches occupied by Chase have accounted for the greatest number of transactions, followed by Fifth Third, Bank of America, PNC, and Wells Fargo. 
• One factor driving investment volumes is the average lease term remaining on properties that have sold. In transactions that have closed in 2026, the lease term remaining has averaged 11.5 years, up from 10 years in 2025 transactions.
• Cap rates have averaged 6.02% across all bank branch sales to close year to date, up 13 basis points from the 2025 average. In deals that closed in the third quarter, cap rates averaged 6.27%.
   

Investment summary:

Investors have acquired bank branches in greater numbers to this point in 2026, despite an interest rate climate that has trended higher. More than 140 bank branches have sold year to date, representing an annual spike of 33%. Transaction volumes have posted a similar increase, surging 32% to $390 million to this point in the year. Sales activity peaked during the second quarter before declining by 12% during the past three months. Still, total sales during the third quarter surpassed 50 bank branches, which has only happened three times in the preceding 18 quarters. Investors are favoring some of the largest national banks, led by Chase, Bank of America, and Wells Fargo, which have combined to account for more than 40% of the sector’s total transaction volume. Sales velocity among U.S. Bank branches has largely held steady in recent years, maintaining a 4% share of total activity.

Super regional banks such as Fifth Third and PNC are accounting for a greater share of transactions. Since the beginning of 2025, nearly three dozen Fifth Third Bank branches have changed hands, totaling approximately $100 million, exceeding combined transaction volume recorded from 2022 to 2024 of roughly $70 million. While Fifth Third is leading super-regional banks for sales, PNC recorded a steep increase in transactions. Year to date, PNC is making up roughly 7% of the sales, up from 3% last year. Sales activity for community banks is up, led by the Bank of the Sierra. Based in Porterville, California, Bank of the Sierra made up the sixth-largest share of the sales mix after not posting a sale in the preceding four years.

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