FJ Capital Management published a whitepaper, “Booming M&A Cycle Creates Investment Opportunity.” It projected banking consolidation would continue in the United States, where there are 6,000 banks, more than in any developed nation. The authors expect that number to halve in the next 10-15 years, for a number of reasons. Following the 2008 financial crisis, regulators have required banks to be more strongly capitalized while they must also invest more in compliance and technology. Small banks have been able to run at a profit with solid commercial real estate loans, but regulations are now designed to prefer diversified portfolios. In this climate, aging chief executive officers and board chairs are more inclined to sell their banks than confront the challenges of constantly upping their regulatory and cyber-security learning curves. FJ Capital is an advisory firm specializing in investment in banks with market capitalization between $300 million and $10 billion.