Q3 FDIC data indicates that the long, slow, and steady consolidation of the banking industry continues.

BankingStrategist calculates the Banking Industry Consolidation Rate to be 3.7 percent on a year-to-date basis for 2019. This level is on par with the average since 1990, but slightly lower than consolidation rates in recent years.

There were 5,256 banks and thrifts chartered at the end of Q3. For the latest four quarters:

• Bank charters declined by 221, or 4.0 percent;

• Twelve (12) new banks were opened; while this number is up over recent years, the De Novo Bank Replenishment Rate is only 7 percent - that is, only 7 new banks replaced each 100 banks that failed or merged. Prior to the Great Recession, the De Novo Bank Replenishment Rate averaged 32 percent.

• There was a single bank failure; and

• 232 banks were merged.

Slow but steady.

As it has for the past several decades, the banking industry consolidation continues. Will this pace continue over the next several years. The trend would suggest that it will.