Small- and Mid-Cap U.S. Bank M&A Activity Could Exceed Previous Record

ARLINGTON, Va., Nov. 15, 2010 /PRNewswire/ -- Martin Friedman, Chief Executive Officer and Portfolio Manager of FJ Capital Management, says merger and acquisition (M&A) activity in the U.S. small- and mid-capitalization bank space could rival and possibly exceed the previous record of the mid-1990s consolidation that followed the savings and loan crisis.

In a white paper released today on the small- and mid-cap bank sector, Friedman, a banking expert with more than 20 years of capital markets experience, points to several factors creating considerable pressure on banks' ability to earn acceptable shareholder returns. This lack of returns, according to Friedman, could drive many management teams to exit the business.

The paper, "M&A Boom in Small & Mid-Cap Banks Creates Opportunity," also discusses the banking landscape, past and present, and showcases recent bank acquisitions, which while falling below investors' radar screens, have produced outsized returns. In the year-to-date period ended Oct. 31, 2010, 26 public transactions were completed with an average, one-day stock price spike of 83 percent following the deal's announcement.

Additionally, today's banking climate is compared and contrasted to the last major consolidation cycle in the United States. Though there are some differences, there is one indisputable constant -- the trend in the sector today is, as it was 20 years ago, clearly consolidation with the number of banks having dropped by roughly half during this time.  

The white paper focuses on the boardroom to provide a better understanding of how today's management teams are thinking and positioning their banks in the face of significant headwinds, including a tough economy, historic regulatory changes and the resultant cost pressures, and declining loan demand.    

The paper also delves into the much-talked about FDIC-assisted opportunity and its impact on the outlook for whole bank M&A transactions. Lastly, the paper discusses the viability of investing in demonstrated and potential acquirers.

For additional information or copies of the white paper, please use the below contact information or use the following link:  http://www.scribd.com/doc/42621596/M-A-Boom-in-Small-and-Mid-Cap-Banks-Creates-Opportunity

FJ Capital Management is an investment management firm based in Arlington, VA, with expertise in fundamental investment strategies focused on under-followed small- and mid-capitalization banks and thrifts.

CONTACT:  Andrew Jose, COO and Co-Founder, FJ Capital Management, [email protected], +1-703-875-8378

SOURCE FJ Capital Management