TRENDS IN BANK CHARTERS

(Data updated quarterly as Call Reports are filed; Click on any image to open PDF.)

The Trends in Bank Charters is sourced from the F.D.I.C. with data as of Q4 2018 and tables or graphics created by BankingStrategist.com. The charts show the continuing industry consolidation, although at a slower pace than has occurred historically.

Bank Charters:  For the latest twelve months, the number of banking institutions declined by a net 264, or 5 percent. This decline was comparable to annual averages since 1990.   De novo banking:  Eight (8) new banks chartered compared to annual average of 100 new banks over past 27 years. For a variety of reasons, including regulatory process and increased capital requirements, it is unlikely that de novo banking will return to its past levels.   Bank M&A  continued with 259 bank charters eliminated by mergers; this is well below the annual average of nearly 400 over the past 27 years.

Bank Charters: For the latest twelve months, the number of banking institutions declined by a net 264, or 5 percent. This decline was comparable to annual averages since 1990.

De novo banking: Eight (8) new banks chartered compared to annual average of 100 new banks over past 27 years. For a variety of reasons, including regulatory process and increased capital requirements, it is unlikely that de novo banking will return to its past levels.

Bank M&A continued with 259 bank charters eliminated by mergers; this is well below the annual average of nearly 400 over the past 27 years.

Bank Charters:  Since 1990, there has been a net reduction in bank charters or number of banking institutions by 9,752, or 64 percent. On average, the number of banking institutions declined by 3.6% annually.   De novo banking : Over 2,700 new banks were started since 1990 with ~100 de novo banks chartered annually on average.   Industry consolidation and bank M&A  activity averaged nearly 400 bank charter reductions annually. Over 11,000 banks were acquired or merged since 1990.

Bank Charters: Since 1990, there has been a net reduction in bank charters or number of banking institutions by 9,752, or 64 percent. On average, the number of banking institutions declined by 3.6% annually.

De novo banking: Over 2,700 new banks were started since 1990 with ~100 de novo banks chartered annually on average.

Industry consolidation and bank M&A activity averaged nearly 400 bank charter reductions annually. Over 11,000 banks were acquired or merged since 1990.

Industry consolidation continues but at slower pace. And the consolidation continues to occur in the smaller community banks - net reduction in number of community banks under $500 million in total assets.

Industry consolidation continues but at slower pace. And the consolidation continues to occur in the smaller community banks - net reduction in number of community banks under $500 million in total assets.

And the consolidation continues in those states with the most number of smaller community banks. States showing larger declines include Illinois (18), Florida and Texas (16), Missouri ( 14), Minnesota (13), California and Kansas (12) and New Jersey and Wisconsin (10).

And the consolidation continues in those states with the most number of smaller community banks. States showing larger declines include Illinois (18), Florida and Texas (16), Missouri ( 14), Minnesota (13), California and Kansas (12) and New Jersey and Wisconsin (10).

Bank Charters:  Bank charters continue downward trend primarily due to mergers and acquisitions. Bank failures and de novo banking are also impacting this trend.

Bank Charters: Bank charters continue downward trend primarily due to mergers and acquisitions. Bank failures and de novo banking are also impacting this trend.

Bank Charter Reductions:  The reduction in bank charters continues at a fairly consistent pace - averaging 293 over past eight years with a reduction of 264 in 2018

Bank Charter Reductions: The reduction in bank charters continues at a fairly consistent pace - averaging 293 over past eight years with a reduction of 264 in 2018

De Novo Banking Activity:  One of the most noteworthy impacts of the change in banking regulation arising out of the Great Recession is the lack of de novo banking activity. Where historically there averaged approximately 149 de novo bank start-ups annually, today there are only a nominal number of new banks being formed. This is a topic that the FDIC and other bank regulators are reviewing for action.   Handbook for Organizers of De Novo Banks (FDIC)

De Novo Banking Activity: One of the most noteworthy impacts of the change in banking regulation arising out of the Great Recession is the lack of de novo banking activity. Where historically there averaged approximately 149 de novo bank start-ups annually, today there are only a nominal number of new banks being formed. This is a topic that the FDIC and other bank regulators are reviewing for action.

Handbook for Organizers of De Novo Banks (FDIC)

Bank Merger and Acquisition Activity:  Bank merger activity has slowed considerably compared to the 1990's. However, bank mergers and acquisitions continue at a steady pace - approximately 244 bank mergers annually. over past eight years Acquisition activity stems from a variety of factors, including expansion into contiguous markets or into new market, strategic decisions to for family-owned banks to cash out for estate planning and diversification goals or to leverage operating platform across larger asset base.

Bank Merger and Acquisition Activity: Bank merger activity has slowed considerably compared to the 1990's. However, bank mergers and acquisitions continue at a steady pace - approximately 244 bank mergers annually. over past eight years Acquisition activity stems from a variety of factors, including expansion into contiguous markets or into new market, strategic decisions to for family-owned banks to cash out for estate planning and diversification goals or to leverage operating platform across larger asset base.

Bank Failures:  Since the Great Recession, the number of bank failures had declined significantly. There have been zero bank failures in 2018.

Bank Failures: Since the Great Recession, the number of bank failures had declined significantly. There have been zero bank failures in 2018.

Total Assets of Bank Failures:  And the dollar level of bank failures has also declined. With no bank failures in 2018, bank failure total assets were zero.

Total Assets of Bank Failures: And the dollar level of bank failures has also declined. With no bank failures in 2018, bank failure total assets were zero.