How to Manage Brand Risk for M&A Success

In today’s competitive environment, mergers and acquisitions are a major driver of banking performance. With more than half of financial institution leaders reporting that they’re open to an acquisition in the next year, according to Bank Director’s 2025 Bank M&A Survey, M&A is one of the strongest levers for growth. Whether influenced by geographic expansion, technological innovation or portfolio diversification, ambitious bank leaders embrace M&A as a strategic priority. But amid all the focus on financials and operations in banking M&A, there’s one key risk area that may fly under the radar — the brand.

The reality is that institutions that fail to assess and address brand risks early in the M&A process jeopardize long-term success of their deal. Branding decisions — whether related to naming conflicts, reputational concerns or operational inefficiencies — can have a measurable impact on the outcome of a merger. Strategic branding not only supports smoother integration today, but it also sets the stage for accelerated growth tomorrow. That’s why banks that develop and deploy a strong brand strategy during M&A are 42% more likely to achieve their growth goals, according to industry data.

Brand risks in banking M&A typically fall into three categories: legal, reputational and operational. Each risk area can pose barriers to successful unification of the two organizations and undermine the value of the deal if not addressed early.

Legal Risk
Banks expanding into new markets must ensure their name is both ownable and legally permissible in new and future geographic areas. Legal challenges will only delay the deal. Even more, legal availability alone is not enough. Institutions must evaluate whether a name has enough equity and distinction to stand out in a sea of sameness, where countless banks share similar names containing the words national, community, citizens and trust.

For example, when Citizens National Bank expanded into Austin, Texas, they faced a competitive conflict for their name with an existing institution. The solution was to rebrand to VeraBank, now based in Henderson, Texas. It’s a distinctive, ownable and scalable brand that enabled the bank to drive an impressive increase in assets in a short timeframe.

Reputational Risk
Beyond legal considerations, financial institutions must assess the reputational risk of keeping one of their legacy names or opting for a full rebrand to establish renewed relevance in the market. Brand names carry meaning — shaping people’s perception, conveying organizational values and impacting customer loyalty. Fundamentally, banks must determine whether the brand resonates with customers or creates confusion in the market.

Bravera Bank in Dickinson, North Dakota, faced the challenges of their name head-on. Formerly American Bank Center, the institution used data to inform their decision making, selecting a new name that would differentiate the bank in current and new geographic areas. Since the rebrand, Bravera has grown into new markets and fostered impressive net new account growth.

Operational Risk
Operational brand risks during M&A include whether their name creates clarity internally and externally for the organization. As financial institutions expand into new markets through M&A, they must assess whether their brand would limit operational efficiency and hinder future growth. When banks operate under separate names post-merger, institutions risk brand fragmentation, creating internal inefficiencies and external confusion.

Park National Bank in Newark, Ohio, provides a strong example of unification. Previously operating under 12 affiliate brands, the bank came together under one name and brand identity. The result is a streamlined organization with efficient internal operations and a clear identity in the market, which ultimately frees up organizational resources to focus on strategic growth.

Brand Strategy for Banking M&A
For banks knee-deep in the M&A process, the role of brand is often thought of as post-transaction consideration, something for leaders to address after the merger is complete. But that approach creates problems for organizations. Instead, brand should be addressed early during due diligence, incorporating stakeholder communications, naming strategy and go-to-market planning. A well-executed brand strategy enables institutions to enter new markets with confidence, unite cultures under a powerful brand banner and turbocharge post-merger growth.