The Q2 FDIC Call Report data reflects continued banking industry consolidation.

The Banking Industry Consolidation Rate was 4.5% over the last four quarters.

This reflects a ongoing bank merger activity with the Banking Merger Rate of 4.2% over these four quarters. The Bank Failure Rate was nominal during this period. And the De Novo Bank Replenishment Rate was on 4.8% (i..e., only 5 percent of the banks lost to mergers and failures were replaced by start up banks).

Based upon preliminary data on bank mergers during July and August, it is anticipated that the Banking Industry Consolidation Rate and the Bank Merger Rate will be significantly lower during Q3 2020 as the impact of COVID-19 will show significantly.