Evaluating the Buyer’s Shares

Community and regional bank stocks have outperformed in 2026 as expanding net interest margins, solid earnings growth, and benign credit costs support investor confidence. While IPO activity has improved, bank M&A remains measured, with valuations and deal structures continuing to reflect a disciplined market.

Regional Focus: The Permian BasinThe Permian continued to demonstrate its resilience in the twelve-month period through June 30, 2026 (the review period). Despite a modest decline in rig counts, production reached new highs as operators continued to emphasize capital discipline, drilling efficiencies, and productivity improvements. Heightened geopolitical tensions introduced considerably greater volatility into commodity markets during the latter portion of the review period, yet oil prices ended above year-earlier levels and Permian public companies posted strong stock price appreciation. While basin operators continue to balance disciplined capital allocation with long-term production growth, the Permian remains the nation’s premier oil-producing basin and continues to demonstrate its ability to adapt to changing market conditions.

Charitable gifts involving closely held business interests and other complex assets can create meaningful planning opportunities.