According to a FDIC research study on the long-term consolidation in banking and the implications of this trend for community banks, the regulator found that community banks have remained highly resilient amid the long-term trend of banking industry consolidation.
A key finding of the study is that institutions with assets between $100 million and $10 billion – most of which can be considered community banks – have increased in both number and in total assets since 1985.
The number of banks with assets between $100 million and $1 billion increased by 7% between 1985 and 2013, while the number of banks with assets between $1 billion and $10 billion increased by 5%. These groups of institutions also experienced growth in terms of total assets.
“The FDIC study clearly demonstrates the strength and resilience of the community bank sector and supports the conclusion that community banks will continue to play a vital role in the financial system of the United States for the foreseeable future,” said FDIC chairman Martin J. Gruenberg.