There are estimates showing that the United States is losing an average of one community bank per day. A recent op-ed piece by Vernon Hill (2015), the CEO of Commerce Bank prior to its sale to TD Bank, made the point that the simple process of opening a bank branch in the U.S. (relative to the U.K.) has become so much more onerous. Regulatory pressure to raise more capital has also been an issue. Our research finds that small community banks in general and top-performing banks in particular are growing equity much faster than assets. This mismatch between equity and asset growth puts pressure on these banks to generate higher ROAs to maintain their ROEs. However, that pursuit of higher ROAs can lead to greater risk-taking, if a bank attempts to increase its net interest margin to offset the higher regulatory costs.