The dramatic decline in the number of community banks—down 70% since 1990—is largely driven by mergers and acquisitions, often prompted by aging leadership and insufficient succession planning. Experts emphasize that successful succession requires proactive, multi-year collaboration between the board and executive teams to identify and prepare internal heirs while also considering external talent. Real-world examples from Eclipse Bank and Provident Bank illustrate how thoughtful succession strategies, including mentoring and timely external hires, ensure smooth leadership transitions and long-term stability. Key takeaways highlight the importance of clear ownership of succession at the board level, the value of third-party advisors, and the need to balance tradition with fresh perspectives.

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