The number of U.S. banks with more than $50 billion in assets has increased by one-third since 2018, when regulators raised the threshold for onerous requirements.

According to S&P Global Market Intelligence data, there were 52 banks with more than $50 billion in assets at the end of the first quarter of 2021. That compares with 39 banks at the end of 2017, an increase of 33.3%.

Following the Great Financial Crisis, lawmakers passed the Dodd-Frank Act, which subjected banks over $50 billion in assets to a raft of regulations. In 2018, lawmakers passed the Crapo Bill to roll back some of those provisions. As a result, stress testing requirements would not kick in until banks reached $100 billion in assets.

The change has paved the way for banks to grow their assets, some through large deals that have reshaped the regional banking landscape.

New York Community Bancorp Inc. had been particularly averse to crossing the $50 billion asset mark before the Crapo Bill. The bank actively resisted crossing the threshold for years due to additional regulatory costs. While the bank flirted with the $50 billion asset mark briefly in the fourth quarter of 2015, its average assets for the four quarters trailing were still below the threshold, avoiding the regulatory triggers.

After the Crapo Bill became law in early 2018, New York Community Bancorp immediately surpassed the $50 billion asset threshold in the second quarter of 2018. The bank had $57.66 billion in assets at March 31, 2021, and its acquisition of Flagstar Bancorp Inc. will bring it close to the $100 billion asset mark. On a pro forma basis, NYCB's and Flagstar's assets add up to $87.11 billion in the first quarter of the year.

Thomas Cangemi, NYCB's president and CEO, said that the deal presents the bank with opportunity to continue growing, particularly in mortgages and warehouse lending. During the deal call, Cangemi raised the prospect of the bank growing to $100 billion in assets.

"So think about taking the company close to $100 billion and what the capacity can actually be. So we're very comfortable with all their lines of businesses," Cangemi added.

Synchrony Financial already breached the $100 billion regulatory threshold in the third quarter of 2018 before dropping below the level. As of the first quarter, the bank had $95.85 billion in assets. Synchrony was a former unit of General Electric Co. and was spun off from the conglomerate via an IPO in 2014. Synchrony management envisioned the bank would be subject to stress tests at that time, so the company has the necessary framework if and when it enters the Federal Reserve's processes, said CFO Brian Wenzel at a recent conference.

"We built the process and we separated from [General Electric] as a [stress test] bank. We run everything in the exact same way. We just don't get an output from the Fed. So I think we've built up a lot of credibility in our governance process and the way in which we run it," Wenzel said.

First Horizon Corp. also recently jumped over the $50 billion asset mark and is within sight of the $100 billion asset regulatory line. Its blockbuster merger with IBERIABANK Corp. expanded its assets to $87.51 billion in the first quarter, up 85% from the same period last year. The bank has been emphasizing the transformative nature of the deal, which will allow it to build scale and be more competitive.

"When I look at the combined organization that we have, I think we've got the capabilities and the product offerings and the ability to invest in infrastructure and products and services that we can be very, very competitive," said First Horizon CEO Bryan Jordan during a recent earnings call.

Webster Financial Corp. will also cross the $50 billion asset threshold through a merger. The Waterbury, Conn.-based bank posted $33.31 billion in assets in the first quarter of 2021, but its merger of equals with Sterling Bancorp will put the pro forma bank at $63.23 billion in assets. Webster Financial President and CEO John Ciulla pointed out the benefits that a bigger balance sheet brings during the deal call.

"We often step away from great lending opportunities with long time relationships given balance sheet constraints as a $30 billion bank — constraints that are largely eliminated when you are a $65 billion bank. The result will be stronger, prudently underwritten loan growth, along with increased treasury and capital markets fees," Ciulla said.