FDIC Quarterly 41 2010, Volume 4, No. 4

The decrease in the number of offices comes at a time 

when bank failures and problem banks are at their 

highest levels since the banking crisis of the 1980s and 

early 1990s. The number of FDIC-insured institutions 

declined by 365 during the year ending June 30, 2010, 

compared with a decline of 256 the prior year. Failures 

and mergers each accounted for roughly half of the 

decrease. 

Branch network contraction may also reflect the industry’s continued efforts to reduce expenses in light of the 

recent recession and protracted recovery. From first 

quarter 2002 through fourth quarter 2007—roughly the 

period of the previous expansion—the average noninterest expense to average asset ratio was 3.12 percent, 

compared with 2.95 percent during the recent recessionary period from first quarter 2008 through second 

quarter 2009. Since then, the average noninterest 

expense to average asset ratio has trended slightly 

lower, to 2.91 percent, indicating that banks and thrifts 

continue to monitor overhead costs closely. The effects 

of office contraction and industry cost reduction efforts 

have particularly affected staffing. The number of 

employees at FDIC-insured institutions declined 8.1 

percent to 2 million between first quarter 2008 and 

June 30, 2010. 

Each year as of June 30, the Federal Deposit Insurance 

Corporation (FDIC) and the Office of Thrift Supervision (OTS) survey each FDIC-insured institution to 

collect information on bank and thrift deposits and 

operating branches and offices. The resulting Summary 

of Deposits (SOD) is a valuable resource for analyzing 

deposit and office trends as well as domestic deposit 

market share. 

SOD data were publicly released on October 7, 2010, 

and are available through the FDIC’s Web site at 

http://www2.fdic.gov/sod/index.asp. Available SOD 

data include information on the deposits and branching 

activities of individual FDIC-insured institutions, 

market share information, and various summary charts 

and tables. This article highlights findings from the 

2010 SOD, focusing on national trends in domestic 

deposits and banking offices, and presents some information by state, metropolitan area, and institution.1

The Number of Offices Declined and 

Deposit Growth Slowed 

The number of FDIC-insured institution offices fell by 

1.0 percent to 97,950 during the year ending June 30, 

2010, a net decrease of 993 offices and the first decline 

since 1995.2 Meanwhile, commercial banks and thrifts 

reported weak deposit growth during the year. The 

volume of deposits at FDIC-insured institutions 

increased only 1.7 percent, the lowest growth rate in 

15 years and well below the 7.7 percent rate reported a 

year ago (see Chart 1).3

1

 This analysis reflects updates in SOD data as of October 7, 2010. 

All FDIC-insured institutions that operate branch offices beyond their 

home office and that are required to file a financial report with one of 

the Federal Financial Institutions Examination Council agencies must 

submit responses to SOD surveys to the FDIC or the OTS. Automated 

teller machines are not considered offices for the purposes of the 

survey. Call Report information on unit banks (banks with a single 

headquarters office) has been combined with branch office data to 

form the SOD database. 

2

 SOD data prior to 1994 are not available electronically and therefore 

are not shown in this article. 

3

 Offices include those in the 50 states and the District of Columbia but 

not those in U.S. territories. The SOD data include domestic deposits 

only, referred to in this report as “deposits.” 

Feature Article:

Highlights from the 2010 Summary of Deposits

Chart 1

Number of Offices Domestic Deposits (Trillions of Dollars)

Source: FDIC Summary of Deposits and OTS Branch Office Survey.

The Number of FDIC-Insured Institution Offices Decreased,

while Deposit Growth Slowed

1994 1998 2002 2006 2010

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Number of Offices

Domestic Deposits

60,000

65,000

70,000

75,000

80,000

85,000

90,000

95,000

100,000

105,000

110,000
FDIC Quarterly 42 2010, Volume 4, No. 4

Given the contraction in the number of offices, the ratio 

of offices per million people decreased 1.8 percent from 

2009 to 2010, the second consecutive decrease in this 

ratio (see Chart 2). The number of offices per million 

people as of June 30, 2010—317—almost equaled the 

June 30, 2006, level of 316. The decrease in the number 

of bank and thrift offices boosted the amount of domestic deposits per office this year, although the rate of 

growth was below that of prior years, given overall lower 

deposit growth. Domestic deposits per office increased 

2.7 percent in 2010, less than half the 7.3 percent 

reported in 2009 and also below the five-year compound 

annual growth rate (CAGR) of 3.9 percent.4

4

 The CAGR is the nth root of the percentage change, where n is the 

number of years in the period.

Small Cities and Towns Reported the Fastest 

Deposit Growth 

Deposits and offices continue to be concentrated in 

metropolitan areas. As of June 30, 2010, about 77 

percent of offices and 89 percent of domestic deposits 

were located in metropolitan areas, a level unchanged 

from 2009 (see Table 1).5 However, this is the first 

year since 1995 that the number of offices in metropolitan areas decreased and the number of offices 

decreased simultaneously in all three community size 

categories: metropolitan, micropolitan, and “other” 

areas.6

Micropolitan areas—smaller cities and towns—had 

both the highest deposit growth rate and the lowest 

percentage of office contraction during the year. Office 

contraction rates for metropolitan areas and “other” 

less populated areas were both less than 1.0 percent; 

however, metropolitan areas had a higher rate of 

deposit growth. Metropolitan areas had higher five-year 

CAGRs for both deposit and office growth than either 

micropolitan or “other” areas.

“Other” Office Types Grew Fastest during the 

Past Year

Traditional brick-and-mortar offices make up 90 

percent of all commercial banking offices; however, 

the SOD surveys all banking offices, including retail 

(e.g., offices in supermarkets or other stores), drive5

 Metropolitan statistical areas have urban clusters of greater than 

50,000 inhabitants. 

6

 Micropolitan statistical areas have urban clusters of between 10,000 

and 50,000 inhabitants. “Other” areas have populations of 10,000 or 

fewer inhabitants.

Chart 2

Offices Per Million People

Domestic Deposits Per Office

(Millions of Dollars)

Sources: FDIC Summary of Deposits and OTS Branch Office Survey. 

Population data from the U.S. Census Bureau (Haver Analytics).

Bank Offices Per Million People Have Declined,

and Deposits Per Office Have Climbed 

250

260

270

280

290

300

310

320

330

1994 1998 2002 2006 2010

0

10

20

30

40

50

60

70

80

90

100

Offices per million people

Domestic deposits per office

Table 1

Micropolitan Areas Reported the Highest One-Year Deposit Growth Rate

Metropolitan Areas Micropolitan Areas Other Areas 

Number 

of Offices

Domestic 

Deposits 

($ billions)

Number 

of Offices

Domestic 

Deposits 

($ billions)

Number 

of Offices

Domestic 

Deposits 

($ billions)

June 2005 69,157 5,178 11,792 431 9,730 267

June 2009 75,950 6,681 12,160 493 9,831 318

June 2010 75,349 6,793 12,147 507 9,746 321

1-Year Growth Rate -0.8% 1.7% -0.1% 2.7% -0.9% 1.0%

5-Year Compound Growth Rate 1.7% 5.6% 0.6% 3.3% 0.0% 3.7%

Source: FDIC Summary of Deposits and OTS Branch Office Survey. 

Notes: Deposit-taking offices only. Metropolitan statistical areas have urban clusters of greater than 50,000 or more inhabitants. Each micropolitan statistical area has an urban cluster of 

between 10,000 and 50,000 inhabitants. Other areas have less population. See U.S. Census Bureau definitions for greater detail.
FDIC Quarterly 43 2010, Volume 4, No. 4

Summary of Deposits

through offices, and “other” office types. The “other” 

category, which comprises primarily mobile or seasonal 

offices and those that provide back-office support for 

Internet deposit operations, posted the highest growth 

rate during the past year, followed by drive-through 

facilities (see Table 2).7 This is the second consecutive 

year that the “other” office category posted the highest 

growth rate. 

Large Organizations Reported the Strongest 

Deposit Growth 

Large organizations (those with more than $10 billion 

in total deposits) continue to report the largest share of 

banking offices and domestic deposits among insured 

banks and thrifts. Large organizations grew deposits 

during the year ending June 30, 2010 (see Table 3). 

Deposits at midsized organizations (those with between 

7

 Office type information is not provided for OTS-supervised 

institutions.

$1 billion and $10 billion in total deposits) and at small 

organizations (those with less than $1 billion in total 

deposits) decreased. Reflective of overall deposit 

growth, the 2010 deposit growth rate for organizations 

in each of the three size groups was significantly below 

its corresponding five-year CAGR. 

Office growth for organizations in each of the three size 

groups was also below its corresponding five-year 

CAGR during the year. Large organizations posted the 

only increase (2.5 percent) in the number of offices. 

The number of offices operated by both midsized and 

small organizations declined. 

Industry office and deposit growth is affected not only 

by the organic growth of individual institutions and the 

growth achieved through mergers and acquisitions, but 

also by the number of institutions that fail. Small and 

Table 2

Other Banking Offices Increased at the Fastest Rate

Brick and Mortar 

Offices Retail Offices

Drive-Through 

Facilities

Other Office 

Types Total

June 2005 68,769 4,576 2,762 592 76,699

June 2009 78,163 5,337 2,329 655 86,484

June 2010 77,991 5,259 2,480 760 86,490

1-Year Growth Rate -0.2% -1.5% 6.5% 16.0% 0.0%

5-Year Compounded Growth Rate 2.5% 2.8% -2.1% 5.1% 2.4%

Source: FDIC Summary of Deposits and OTS Branch Office Survey.

Note: Deposit-taking offices of commercial banks only.

Table 3

Large Organizations Reported Deposit and Office Growth

Large Organizations Midsized Organizations Small Organizations

Number of 

Institutions

Number of 

Offices

Domestic 

Deposits 

($ billions)

Number of 

Institutions

Number of 

Offices

Domestic 

Deposits 

($ billions)

Number of 

Institutions

Number of 

Offices

Domestic 

Deposits 

($ billions)

June 2005 68 39,019 3,552 376 17,011 1,071 8,382 34,636 1,247

June 2009 69 44,773 4,864 462 19,678 1,274 7,628 33,480 1,347

June 2010 69 45,890 5,075 447 18,982 1,203 7,283 32,360 1,329

1-Year Growth Rate 0.0% 2.5% 4.3% -3.2% -3.5% -5.6% -4.5% -3.3% -1.4%

5-Year Compounded 

Growth Rate 0.3% 3.3% 7.4% 3.5% 2.2% 2.4% -2.8% -1.4% 1.3%

Source: FDIC Summary of Deposits and OTS Branch Office Survey.

Notes: Deposit-taking offices only. Small organizations are those with consolidated deposits less than $1 billion. Midsized organizations are those with consolidated deposits of $1 billion to 

$10 billion. Large organizations are those with consolidated deposits greater than $10 billion.
FDIC Quarterly 44 2010, Volume 4, No. 4

midsized institutions have been more likely to fail or 

be acquired, depressing growth for these size categories 

while boosting growth rates for large institutions, which 

are more likely to be net acquirers of failed and merged 

institutions. For example, of the 184 institutions that 

were acquired through merger transactions in the year 

ending June 30, 2010, 165 were small organizations 

and 13 were midsized. Of the 181 institutions that 

failed last year, 145 were small organizations and 34 

were midsized. 

The Number of Banking Organizations with 

Operations in Multiple States Increased 

Although no banking organization, even the largest or 

most geographically diverse, operates in all 50 states 

and the District of Columbia, the number that operate 

in at least 15 states increased from 14 to 15 during the 

year (see Table 4). As of June 30, 2010, only one banking organization—Bank of America Corporation—

reported holding more than 10 percent of aggregate 

domestic deposits. As banking organizations grow 

larger, they may encounter nationwide deposit concentration limits.8

States with the Highest Population Growth Rates 

Generally Reported Higher Office Growth Rates 

Studies have shown that office growth is related to 

demographic factors such as population, employment, 

and per capita income growth.9 In general, states with a 

faster growing population have experienced greater 

8

 Concentration limits are set forth in the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, as codified by the FDIC in 

Section 44 of the Federal Deposit Insurance Act. The Act states in part 

that bank regulatory agencies cannot approve an interstate merger 

transaction if the resulting bank (including all insured depository institutions that are affiliates of the resulting bank), upon consummation of 

the transaction, would control more than 10 percent of the total 

amount of deposits of insured depository institutions in the United 

States, with certain exceptions. The Dodd-Frank Wall Street Reform 

and Consumer Protection Act, Pub. L. No. 111-203 (Dodd-Frank) 

creates an additional cap based on the total liabilities of banking and 

thrift organizations and nonbank firms identified as posing systemic 

risk. Dodd-Frank prohibits mergers or acquisitions by such firms if the 

total consolidated liabilities of the resulting company would exceed 10 

percent of the aggregate total consolidated liabilities of such firms. 

9

 See Ron Spieker, “Bank Branch Growth Has Been Steady—

Will It Continue?” FDIC Future of Banking Study, August 2004, 

http://www.fdic.gov/bank/analytical/future/fob_08.pdf. 

Table 4

More Banking Organizations Are Operating in 15 or More States

Company

Number of States 

with Deposit Offices

Reported Number of 

Deposit Offices

Domestic Deposits 

($ billions)

Share of Total 

Domestic Deposits 

(%)

Wells Fargo & Company 40 6,586 750.4 9.8%

Bank of America Corporation 36 6,041 916.1 11.9%

U.S. Bancorp 26 3,056 169.2 2.2%

JPMorgan Chase & Co. 24 5,227 652.7 8.5%

Beal Bank SSB 21 33 2.6 0.0%

BNP Paribas 20 716 45.0 0.6%

First Citizens Bancshares, Inc. 17 442 17.8 0.2%

Woodforest Financial Group, Inc. 17 736 2.9 0.0%

Northern Trust Corporation 17 88 23.3 0.3%

Dickinson Financial Corporation 17 207 5.0 0.1%

PNC Financial Services Group 16 2,572 177.3 2.3%

Capitol Bancorp Ltd. 16 69 4.2 0.1%

Regions Financial Corporation 16 1,774 95.8 1.2%

KeyCorp 15 1,027 61.8 0.8%

Citigroup Inc. 15 1,023 307.3 4.0%

Sources: FDIC Summary of Deposits and OTS Branch Office Survey.

Note: Deposit-taking offices only. 
FDIC Quarterly 45 2010, Volume 4, No. 4

Summary of Deposits

office growth over the past five years.10 For example, six 

of the ten states with the fastest population growth also 

ranked among the top ten states for office growth 

during the past five years. However, the relationship 

was not as strong among states with slow population 

growth. Of the ten states with the slowest population 

growth, only four ranked among the bottom ten for 

office growth.

Deposit volumes are not as strongly correlated with 

population growth and are driven by other factors, such 

as state law. Institutions also may follow different procedures when assigning deposits to branches, such as the 

proximity to the account holder’s address, the office 

where the deposit account is most active, the office 

where the account originated, or the office assignment 

used when determining employee compensation. The 

factors affecting office and deposit growth have contributed to divergent office and deposit growth rates across 

the nation (see Maps 1 and 2). 

10 The five-year compound growth rate in the number of offices by 

state has a correlation coefficient of 0.51 to the five-year compound 

growth rate in population by state. In contrast, the five-year compound 

growth rate in the amount of deposits by state has a correlation coefficient of 0.32 to the five-year compound growth rate in population by 

state. The correlation coefficient is a statistic that measures the degree 

to which two or more data series move together. 

Three-Fourths of the Nation’s 25 Largest Markets 

Are “Highly Concentrated” or “Moderately 

Concentrated”

By law, bank regulatory agencies and the Department of 

Justice must consider market concentration in their 

analysis of proposed mergers and acquisitions. The 

Herfindahl-Hirschman Index (HHI) is a commonly 

used measure of market concentration.11 The HHI 

measures increases in market concentration as banking 

organizations increase their deposit market share in a 

particular trade area. As of June 30, 2010, 4 of the 25 

largest metropolitan areas had an HHI in the “highly 

concentrated” range, and another 15 metropolitan areas 

had an HHI in the “moderately concentrated” range 

(see Table 5). 

Individual trends in market concentration in the 

nation’s 25 largest metropolitan areas were mixed in 

2010. The number of metropolitan areas with HHI 

scores in the “highly concentrated” or “moderately 

concentrated” range decreased by a net of one when 

11 Under the Department of Justice (DOJ) guidelines, markets with an 

HHI of less than 1,000 are considered “unconcentrated,” those with an 

HHI between 1,000 and 1,800 are considered “moderately concentrated,” and those with an HHI greater than 1,800 are considered 

“highly concentrated.” For more details, see the joint Federal Trade 

Commission and DOJ Web site on “Horizontal Merger Guidelines” at 

http://www.usdoj.gov/atr/public/guidelines/horiz_book/hmg1.html. 

Percentage Change in

Number of Branches Reported by

Insured Institutions, 2005–2010

< 0.00%

0.0-1.00%

1.01-2.00%

Source: FDIC. > 2.00%

Office Growth Was Weakest in the Midwest and Northeast

(Number of Branches Reported as of June 30, 2010)

HI: 284

AK: 133

WY: 235

WA: 1,891

OR: 1,124

NV: 550

CA: 

7,177 MO:

2,436

IA: 1,621

MN:

1,841

ND: 444

SD: 487

NE: 1,092

KS: 1,561

TX: 6,965

CO: 1,662

TN: 2,296

LA:

1,650

MS:

1,209

AR:

1,483

FL: 5,666

IL:

4,942 IN:

2,400

OH:

4,014

PA: 4,719

NY:

5,480

ME:

MT: 392 511

NM: 514 OK: 1,411

GA: 2,758

AZ: 1,381

UT: 602

ID: 541

VT: 266

NH: 433

MA: 2,217

RI: 259

CT: 1,296

NJ: 3,337

DE: 274

MD: 1,804

DC: 243

WV: 664

KY: 1,829

WI:

2,351 MI:

3,008

AL:

1,578

SC:

1,458

NC: 2,779

VA:

2,682

Map 1

Percentage Change in

Amount of Deposits Reported by

Insured Institutions in Each State, 2005–2010

< 0.00%

0.01-4.00%

4.01-6.00%

6.01-8.00%

Source: FDIC. > 8.00%

Deposit Growth Was Strong in the Midwest and Southwest, but the Way Deposits Are Assigned by Large Institutions May Skew Changes in Deposits

HI

AK

WY

WA

OR

NV

CA

MO

IA

MN

ND

SD

NE

KS

TX

CO

TN

LA

MS

AR

FL

IL IN OH

NH

PA

NY

ME MT

NM OK

GA

AZ

UT

ID

KY

WI

MI

AL

SC

NC

VA

VT

WV

MA

RI CT

NJ

DE

MD

DC

Map 2
FDIC Quarterly 46 2010, Volume 4, No. 4

compared with last year’s HHI scores.12 However, HHI 

scores for 15 of the 25 largest metropolitan areas 

increased during the year ending June 30, 2010, up from 

ten during the prior year. 

Within particular markets, some large institutions 

continue to exert significant local market power. In 11 

of the nation’s 25 largest metropolitan areas, one institution reports a market share of at least one-fourth of 

domestic deposits. Overall, the three banking organizations with the largest branch networks have 18 percent 

12 Both the Tampa and Washington, DC, metropolitan areas reported 

HHI scores below 1,000 in 2010; the Boston metropolitan area’s HHI 

score increased to above 1,000. 

of the nation’s deposit offices but hold 30 percent of 

domestic deposits. 

Conclusion

The number of banking offices decreased for the first 

time in 15 years, and deposit growth slowed during the 

year ending June 30, 2010. The number of offices 

declined in communities of all sizes as a result of institution failures and merger and acquisition activity as 

well as the industry’s continued efforts to reduce 

overhead in response to lingering challenges in the 

operating environment. Large institutions reported 

higher-than-average deposit growth and slightly positive office growth, and hold significant levels of deposits 

Table 5

Four of the Largest Metro Areas Are Characterized as “Highly Concentrated” Markets 

According to the Department of Justice’s Herfindahl-Hirschman Index Measurement 

(Top 25 metropolitan areas by population as of June 30, 2010)

Metropolitan Area

HerfindahlHirschman 

Index 

Population 

Estimate 

(millions)

5-Year 

Compounded 

Growth Rate 

in Offices 

5-Year 

Compounded 

Growth Rate 

in Deposits 

Pittsburgh, PA 2,466 2.4 0.2 5.9

San Francisco-Oakland-Fremont, CA 2,323 4.4 1.3 6.1

Minneapolis-St. Paul-Bloomington, MN-WI 2,259 3.3 1.2 10.0

Cincinnati-Middletown, OH-KY-IN 2,028 2.2 0.7 8.9

Phoenix-Mesa-Scottsdale, AZ 1,674 4.4 4.6 3.9

Houston-Sugar Land-Baytown, TX 1,551 6.0 4.1 6.6

Dallas-Fort Worth-Arlington, TX 1,513 6.6 3.7 6.2

Sacramento--Arden-Arcade--Roseville, CA 1,306 2.2 2.3 2.4

Portland-Vancouver-Beaverton, OR-WA 1,293 2.3 1.7 5.7

Baltimore-Towson, MD 1,281 2.7 0.4 5.7

Detroit-Warren-Livonia, MI 1,281 4.4 -0.1 2.3

New York-Northern New Jersey-Long Island, NY-NJ-PA 1,276 19.2 2.1 3.9

San Diego-Carlsbad-San Marcos, CA 1,270 3.1 1.7 2.8

Atlanta-Sandy Springs-Marietta, GA 1,248 5.6 0.8 3.2

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 1,224 6.0 0.3 11.4

Seattle-Tacoma-Bellevue, WA 1,151 3.5 0.9 3.6

Riverside-San Bernardino-Ontario, CA 1,116 4.2 3.4 0.8

Boston-Cambridge-Quincy, MA-NH 1,071 4.6 1.0 3.8

Denver-Aurora, CO 1,016 2.6 3.1 6.1

Los Angeles-Long Beach-Santa Ana, CA 962 13.0 1.7 3.2

Washington-Arlington-Alexandria, DC-VA-MD-WV 959 5.5 2.9 4.9

Tampa-St. Petersburg-Clearwater, FL 958 2.8 1.4 5.6

Miami-Fort Lauderdale-Pompano Beach, FL 719 5.5 1.7 2.6

Chicago-Naperville-Joliet, IL-IN-WI 635 9.7 1.5 3.4

St. Louis, MO-IL 632 2.9 2.9 8.2

Sources: FDIC Summary of Deposits and OTS Branch Office Survey, and Moody’s Economy.com.

Note: The Herfindahl-Hirschman Index (HHI), a commonly accepted measure of market concentration, is calculated by squaring the market share of each firm competing in the market and 

then summing the resulting numbers. Markets in which the HHI is between 1,000 and 1,800 points are considered to be “moderately concentrated,” and those in which the HHI is in 

excess of 1,800 points are considered to be “highly concentrated.” For more information, please refer to the joint U.S. Department of Justice and Federal Trade Commission Web site at 

http://www.usdoj.gov/atr/public/testimony/hhi.htm. Population estimates for 2008 are from Moody’s Economy.com.
FDIC Quarterly 47 2010, Volume 4, No. 4

Summary of Deposits

in a number of markets across the country. Going 

forward, expectations for future office growth are 

modest as the industry continues to work through high 

levels of problem assets and related earnings weaknesses 

(see accompanying Quarterly Banking Profile).

Author: Robert E. Basinger, Senior Financial Analyst

Division of Insurance and Research

The author would like to thank Tom Leonard and Benjamin 

Tikvina of the Division of Insurance and Research for their 

contributions to this article.