How will recent geo-political turmoil, new direction at the Fed, and general legislative easing impact community bank earnings, asset quality, growth and values? A study of recent bank financial performance and valuations of public banks as well as M&A transactions reveals many positive trends which bode well for the uncertainties that lie ahead. Bank stocks and M&A prices enjoyed a rebound in 2025 and the first half of 2026, but will it continue? To better inform banks as they plan strategically for the future, we will study the current trends and identify areas of optimism as well as areas of concern.