Kind of interesting future on the horizon for banks, according to a bank analyst from Memphis-based Wunderlich Securities:

Kevin Reynolds says there are several factors that point toward a big M&A “super-cycle.”

1. Overcapacity in the space. (More than 7,000 banks in the U.S. and more than 90 percent with less than $1B in assets.)
2. More than 85 percent of financial institutions in the part of the country bounded by Texas, Arkansas, Tennessee and Virginia are privately held and without efficient access to capital markets.
3. The industry is facing more regulation, greater capital requirements, higher costs and low-interest rate environment.
4. And the clock is ticking. About 40 percent of U.S. bank CEOs are older than 60.

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