45 

QUARTERLY 2023 VOLUME 17, NUMBER 1 

2022 SUMMARY OF DEPOSITS HIGHLIGHTS 

Responses to the Summary of Deposits (SOD) Survey for the year 

ending June 30, 2022, reflected moderation in deposit growth following 

extraordinary growth in the years ending June 2020 and June 2021. 

Total deposits of domestic offices of FDIC-insured institutions 

increased 5.2 percent during the most recent SOD reporting period.1 

In the aggregate, banks in all asset size groups, community and 

noncommunity banks, banks in metropolitan, micropolitan, and 

rural areas, and banks designated as Minority Depository Institutions 

(MDIs) all reported increases in deposits for the year ending June 30, 

2022. 

Deposit growth for this survey period follows near-record deposit 

growth in the preceding two years. The 2020 SOD Survey showed a 

21.7 percent increase in deposits, the largest one-year percentage 

increase since the 1940s.2 The 2021 SOD Survey showed deposit 

growth of 10.6 percent, nearly double the pre-pandemic (June 2010 to 

June 2019) average annual rate of 5.4 percent.3 

The moderation in the annual deposit growth rate came with a slight 

deceleration in bank office closures. Between June 2021 and June 2022, 

the number of bank offices fell 3.1 percent, continuing a 13-year trend 

of decline, but the rate of decline in 2022 was slightly lower than the 

record rate of decline of 3.8 percent reported in 2021. In aggregate, 

banks in all asset size groups, in both community and noncommunity 

banks, and in metropolitan, micropolitan, and rural areas reported net 

office closures. 

More than two years since the onset of the COVID-19 pandemic, 

migration effects of the pandemic on bank offices may be appearing 

in SOD Survey results. Changes in the number of offices between 2021 

and 2022 show some relationship to reported migration patterns in 

metropolitan statistical areas (MSAs) between 2020 and 2021. 

1 “Deposits” refers to total deposits in domestic offices of FDIC-insured institutions in the United States, U.S. territories, and possessions. Deposits in foreign offices of FDICinsured institutions and U.S. offices of foreign institutions are not included. 

2 Joseph R. Harris III, Caitlyn R. Kasper, Camille A. Keith, and Derek K. Thieme, “2020 Summary of Deposits Highlights,” FDIC Quarterly 15, no. 1 (2021): 51–63. 

3 The period June 2010 to June 2019 is used consistently throughout this article as the pre-pandemic period. It begins one year after the end of the Great Recession and ends in 

the final SOD Survey period before the onset of the pandemic in early 2020. 
QUARTERLY 

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

2023 VOLUME 17, NUMBER 1 

SUMMARY OF DEPOSITS OVERVIEW 

The Summary of Deposits (SOD) is a unique source of information about the number and physical locations of the 

tens of thousands of bank offices across the United States. The SOD data also include a dollar amount of deposits 

for each bank office. While SOD data are informative, they have some limitations due to the varying methods used 

by banks for attributing deposits to bank offices, as described below. 

The full reporting instructions for the SOD can be found at https://www.fdic.gov/resources/bankers/call-reports/ 

summary-of-deposits/summary-of-deposits-reporting-instructions.pdf. 

The relevant reporting instructions are summarized below. 

Institutions should assign deposits to each office in a manner consistent with their existing internal recordkeeping practices. The following are examples of procedures for assigning deposits to offices: 

•	 Deposits assigned to the office in closest proximity to the accountholder’s address,

•	 Deposits assigned to the office where the account is most active,

•	 Deposits assigned to the office where the account was opened, and

•	 Deposits assigned to offices for branch manager compensation or similar purposes.

Other methods that logically reflect the deposit gathering of the financial institution’s branch offices may also be 

used. It is recognized that certain classes of deposits and deposits of certain types of customers may be assigned 

to a single office for reasons of convenience or efficiency. However, deposit allocations that diverge from the 

financial institution’s internal record-keeping systems and misstate or distort the deposit gathering of an office 

should not be used. 

NATIONAL DEPOSIT GROWTH 

MODERATED FROM RECENT HIGHS 

Between June 2021 and June 2022, deposits increased by $895.1 billion 

(5.2 percent) to $18.1 trillion. Deposit growth continued to slow from 

the near-record growth rate reported in 2020, and was slightly below 

the average pre-pandemic rate of 5.4 percent (Chart 1). Deposit growth 

in 2020 and 2021 was due largely to conditions related to the pandemic, 

but by 2022, fiscal and monetary assistance related to the pandemic 

had waned. That development, and yields on deposits that lagged the 

general increase in interest rates that began in the first half of 2022, 

contributed to a slowdown in deposit growth to more normal levels. 

46 
QUARTERLY 2023 VOLUME 17, NUMBER 1 

Chart 1 

Deposit Growth Continued to Moderate Aer a Near-Record Increase in 2020 

Total Deposits Total Deposits (Le ̃ Axis) ($ Trillions) Percent 

20 25 Percent Change in Deposits From the Previous Year (Right Axis) 

0 

2 

4 

6 

8 

10 

12 

14 

16 

18 

2007 2012 2017 2022 

0 

5 

10 

15 

20 

Source: FDIC Summary of Deposits, June 30, 2007, to June 30, 2022. 

LARGE BANKS REPORTED THE 

LARGEST DEPOSIT GROWTH AS 

BANKS MOVED INTO HIGHER 

ASSET SIZE GROUPS 

Table 1 

On a non-merger-adjusted basis, reflecting the changing structure of 

the banking industry, the smallest banks reported declining deposit 

balances compared with the largest banks. Banks with more than 

$250 billion in assets in June 2022 reported 73.0 percent growth in 

deposits between 2017 and 2022, while banks with less than $1 billion 

in assets reported a 2.7 percent decline in deposits during that period 

(Table 1). 

The non-merger-adjusted results reflect the effects of changes in the 

universe of banks that fall into each asset size group. For example, 

Table 1 compares the deposits of the nine banks with more than 

$250 billion in assets that existed as of June 30, 2017, to the 13 that 

existed as of June 30, 2022. Without adjusting for mergers and organic 

asset growth that can contribute to the change in the number of banks 

in each size group, it might appear that the smallest banks are losing 

the competition for deposits or losing their deposit base. However, 

some small bank deposits “became” large bank deposits because some 

small banks were acquired by large banks, two small banks merged 

Large Banks Reported the Largest From 2017 to 2022 on a Non-Merger-Adjusted Basis 

Bank Size 

 Deposit Growth

Year-Over-Year Deposit Growth, Not Adjusted for Mergers (Percent) 

2018 2019 2020 2021 2022 2017 to 2022 

Assets Greater Than $250 Billion 

Assets $10 Billion to $250 Billion 

Assets $1 Billion to $10 Billion 

Assets Less Than $1 Billion 

All Banks 

2.0 

10.5 

–2.2 

–4.1 

3.8 

3.9 

7.0 

1.4 

–2.8 

4.2 

41.2 

3.1 

18.9 

–0.7 

21.7 

9.6 

13.8 

10.1 

3.9 

10.6 

5.5 

6.0 

3.4 

1.2 

5.2 

73.0 

47.1 

34.2 

–2.7 

53.2 

Source: FDIC Summary of Deposits, June 30, 2017, to June 30, 2022. 

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QUARTERLY 

 

2023 VOLUME 17, NUMBER 1 

into one large bank, or some small banks crossed the threshold into a 

larger asset size group. In these instances, some small banks’ deposits 

would contribute to the growth of larger banks and subtract from the 

growth of smaller banks.4 

To control for these effects, bank deposit data can be “mergeradjusted” to identify the changes in deposit growth that resulted solely 

from the organic growth of deposits, as opposed to changes resulting 

from the effects of mergers. In such an analysis, the specific banks in 

each asset size group are identified as of the most recent quarter. Then, 

the banks that those banks acquired over the period being analyzed 

are identified, and the deposits of the acquired banks are added to the 

deposits of the acquiring bank in the previous period.5 

On a merger-adjusted basis, deposit growth was more evenly 

distributed among asset size groups (Table 2). For example, between 

2017 and 2022, the smallest banks reported merger-adjusted deposit 

growth of 54.0 percent. This figure was higher than the deposit growth 

rate reported by the largest size group and was much larger than the 

non-merger-adjusted deposit decline of 2.7 percent. 

Table 2 

When Adjusting for Mergers and the Movement of Banks Between Asset Size Groups, 

Large Bank Deposit Growth Falls in Line With Other Groups 

Year-Over-Year Deposit Growth, Adjusted for Mergers (Percent) 

Bank Size 2018 2019 2020 2021 2022 

Assets Greater Than $250 Billion 1.7 3.1 24.5 9.6 4.6 

Assets $10 Billion to $250 Billion 6.0 4.9 19.6 11.4 4.8 

Assets $1 Billion to $10 Billion 5.9 6.3 18.4 12.7 8.8 

Assets Less Than $1 Billion 4.2 4.5 16.0 13.5 7.3 

2017 to 2022 

49.6 

55.3 

63.4 

54.0 

Source: FDIC Summary of Deposits, June 30, 2017, to June 30, 2022. 

DEPOSIT GROWTH REMAINED 

ELEVATED FOR COMMUNITY 

BANKS 

Community banks reported deposit growth of 4.8 percent and 

noncommunity banks reported deposit growth of 5.3 percent in the 

year ending June 30, 2022 (Table 3).6 These reported numbers are not 

adjusted for mergers and indicate that annual deposit growth rates are 

higher for noncommunity banks. 

4 For example, between 2021 and 2022, 17 banks with a total of $30.1 billion in deposits dropped into smaller asset size groups, while 79 banks with $191.4 billion in deposits 

crossed the threshold into larger asset size groups. 

5 In this article, merger-adjusting is conducted in one-year increments. For example, the merger-adjusted growth rate of the largest institutions between 2021 and 2022 

depicts the growth over that year of the combined deposits of the June 30, 2022, cohort of the largest institutions and the deposits of all the institutions they acquired between 

2021 and 2022. The same process is conducted for each increment of one year. The five-year growth rate is the compounded growth rate based on each growth rate between 

2018 and 2022. For an explanation of the reasons for and process of merger adjusting bank data, read Eric C. Breitenstein and Derek K. Thieme, “Merger Adjusting Bank Data: 

A Primer,” FDIC Quarterly 13, no. 1 (2019):31-49. 

6 Community banks are defined by criteria in the FDIC 2012 Community Banking Study. The definition encompasses small banks and larger banks that focus on traditional 

lending and deposit-taking activities. 

48 
QUARTERLY 2023 VOLUME 17, NUMBER 1 

Table 3 

Deposit Growth Remained Elevated for Community Banks but Moderated for Noncommunity Banks in 2022 

Bank Designation 

2018 2019 2020 2021 2022 2017 to 2022 

Year-Over-Year Domestic Deposit Growth, Not Adjusted for Mergers (Percent) 

Noncommunity Banks 

Community Banks 

4.3 

0.9 

4.5 

2.2 

23.9 

8.9 

10.4 

12.1 

5.3 

4.8 

57.0 

32.0 

Year-Over-Year Domestic Deposit Growth, Adjusted for Mergers (Percent) 

Noncommunity Banks 

Community Banks 

3.7 

4.9 

3.9 

5.5 

22.6 

16.5 

10.3 

13.5 

4.8 

8.4 

52.6 

58.7 

Source: FDIC Summary of Deposits, June 30, 2017, to June 30, 2022. 

On a merger-adjusted basis, deposit growth was higher for community 

banks than noncommunity banks in 2022. Community bank yearover-year deposit growth was 8.4 percent and noncommunity bank 

year-over-year deposit growth was 4.8 percent. The merger-adjusted 

deposit growth of community banks reflects the change in deposits 

over the previous year of the banks identified as community banks as 

of June 30, 2022. Non-merger-adjusted growth, by contrast, compares 

the deposits of the 4,490 identified community banks as of June 30, 

2021, to those of the 4,333 identified community banks as of June 30, 

2022. 

METROPOLITAN DEPOSIT 

GROWTH LAGGED BEHIND 

THAT OF MICROPOLITAN AND 

RURAL AREAS 

Annual deposit growth rates in metropolitan, micropolitan, and rural 

areas slowed and converged to between 5 and 6 percent for the year 

ending June 30, 2022 (Table 4).7 Growth rates in micropolitan and rural 

areas remained slightly higher than growth rates in metropolitan 

areas. 

Offices in metropolitan areas continued to hold the majority of deposits 

($16.9 trillion or 93.4 percent of the total), followed by offices in 

micropolitan areas ($701.4 billion or 3.9 percent of the total) and rural 

areas ($497.5 billion or 2.7 percent of the total). 

Slower deposit growth in metropolitan areas than in other areas for 

the years ending June 30, 2021, and June 30, 2022, stands in contrast 

to the pattern of the previous four years. Still, between 2017 and 

2022, offices in metropolitan areas reported the highest deposit 

growth rate of the three county types, with a 54.1 percent increase 

in deposits. As a result, the share of deposits in metropolitan areas 

increased from 92.8 to 93.4 percent during the same period. Banks 

in micropolitan areas experienced the second-highest five-year 

growth at 44.1 percent but experienced a slight decline in total 

7 Counties are metropolitan, micropolitan, or rural depending on whether they are in areas designated by the U.S. Office of Management and Budget as metropolitan statistical 

areas or as micropolitan statistical areas. Metropolitan statistical areas have a core urban area with more than 50,000 inhabitants. Micropolitan statistical areas have urban 

clusters with 10,000 to 50,000 inhabitants. All other areas are referred to as rural areas. As of 2020, there were 1,174 metropolitan counties (37.8 percent), 655 micropolitan 

counties (21.1 percent), and 1,279 rural counties (41.2 percent) with offices of banks. 

49 
QUARTERLY 

 

2023 VOLUME 17, NUMBER 1 

market share from 4.1 percent to 3.9, largely due to the deposit surge 

in metropolitan areas. Banks in rural areas experienced the lowest 

deposit growth at 38.1 percent, with total market share declining from 

3.1 percent to 2.7 percent. 

Table 4 

Deposits in Micropolitan Counties Rose Most Among County Types in 2022 

County Type 

Year-Over-Year Change (Percent) 

2017 2018 2019 2020 2021 2022 2017 to 2022 

Metropolitan 

Micropolitan 

Rural 

5.2 

3.4 

3.1 

3.9 

2.3 

2.2 

4.3 

2.7 

2.9 

22.3 

15.3 

11.4 

10.5 

12.3 

11.5 

5.2 

5.9 

5.7 

54.1 

44.1 

38.1 

Source: FDIC Summary of Deposits, June 30, 2017, to June 30, 2022. 

Note: Data are not adjusted for mergers. 

AVERAGE DEPOSITS PER 

BANK AND OFFICE 

CONTINUED TO INCREASE 

Table 5 

The number of banks declined from 4,950 to 4,771 between June 2021 

and June 2022, and the number of offices declined from 81,781 to 79,214 

(Table 5). While the number of banks and offices decreased, offices per 

bank increased and continued to exceed the pre-pandemic average. 

An increase in deposits combined with a decrease in the number of 

banks and offices drove increases in both average deposits per bank 

and average deposits per office during the year ending June 2022. The 

balance of deposits per office increased 8.6 percent in 2022, slowing 

from the record increase of 23.7 percent reported in 2020, but higher 

than the pre-pandemic average growth rate of 6.9 percent. 

The Pace of Net Office Closures Slowed in 2022 After a Record Year for Closures in 2021 

Year 

Number 

of Banks 

Number 

of Offices 

Offices 

per Bank 

Deposits 

($ Billions) 

Deposits per 

Bank 

($ Millions) 

Deposits per 

Office 

($ Thousands) 

2017 

2018 

2019 

2020 

2021 

2022 

5,787 

5,541 

5,303 

5,066 

4,950 

4,771 

89,839 

88,065 

86,382 

84,972 

81,781 

79,214 

15.5 

15.9 

16.3 

16.8 

16.5 

16.6 

11,813 

12,262 

12,772 

15,546 

17,196 

18,091 

2,041 

2,213 

2,408 

3,069 

3,474 

3,792 

131,486 

139,242 

147,854 

182,958 

210,271 

228,385 

Source: FDIC Summary of Deposits, June 30, 2022. 

Note: Data are not adjusted for mergers. 

50 
QUARTERLY 2023 VOLUME 17, NUMBER 1 

THE NUMBER OF OFFICES 

CONTINUED TO DECLINE, BUT 

THE RATE OF DECLINE SLOWED 

FROM A RECORD HIGH 

The number of offices declined 3.1 percent between June 2021 and 

June 2022, slightly lower than the historically high decline of 

3.8 percent reported in 2021 though still higher than the pre-pandemic 

average of 1.4 percent (Chart 2). Of the 4,771 banks that existed as 

of June 30, 2022, 556 (11.7 percent) reported net office openings, 367 

(7.7 percent) reported net office closures, and 3,848 (80.7 percent) 

reported no net change in office count. Only 11.8 percent of banks 

closed any offices. A larger share of noncommunity banks (41.1 percent) 

closed offices than did community banks (8.8 percent). 

Chart 2 

The Rate of Oice Closures Slowed A	er a Record Rate of Decline in 2021 

Number of Oices 

100,000 

80,000 

60,000 

40,000 

20,000 

0 

2007 

-20,000 

-40,000 

-60,000 

-80,000 

-100,000 

Source: FDIC Summary of Deposits, June 30, 2007, to June 30, 2022. 

Number of Oices (Le‘ Axis) 

Percent Change in Oices From Previous Year (Right Axis) Percent 

2012 2017 

5 

4 

3 

2 

1 

0 

2022 

-1 

-2 

-3 

-4 

-5 

SMALL BANKS REPORTED THE 

LARGEST REDUCTION IN 

OFFICES AS BANKS MOVED INTO 

HIGHER ASSET SIZE GROUPS 

On a non-merger-adjusted basis, the smallest banks reported the 

largest net decline in the offices they operated from 2017 to 2022. 

Banks with less than $1 billion in assets as of June 2022 reported a 

27.4 percent decline in offices between 2017 and 2022 (Table 6). 

Table 6 illustrates how non-merger-adjusted data can be volatile 

as banks move in and out of asset size groups due to asset growth, 

mergers, or acquisitions. For example, the number of offices operated 

by banks with more than $250 billion in assets grew 10.2 percent 

between June 2019 and June 2020, while the number of offices of the 

banks with between $10 billion and $250 billion in assets declined 

9.4 percent. This shift was heavily influenced by two banks in 

the smaller size group merging to form one bank with more than 

$250 billion in assets, shifting their offices into the larger size group. 

The numbers in Table 6 reflect not just openings and closures of 

offices, but shifts in the ownership of offices resulting from mergers 

and asset growth. 

51 
QUARTERLY 2023 VOLUME 17, NUMBER 1 

Table 6 

The Smallest Banks Reported the Largest Decline in Offices From 2017 to 2022 on a Non-Merger-Adjusted Basis 

Bank Size 

Year-Over-Year Office Growth, Not Adjusted for Mergers (Percent) 

2018 2019 2020 2021 2022 2017 to 2022 

Assets Greater Than $250 Billion 

Assets $10 Billion to $250 Billion 

Assets $1 Billion to $10 Billion 

Assets Less Than $1 Billion 

All Banks 

–2.8 

6.4 

–7.5 

–5.6 

–2.0 

–3.9 

0.8 

0.0 

–4.6 

–1.9 

10.2 

–9.4 

5.0 

–10.6 

–1.6 

–6.9 

–1.4 

–0.2 

–6.1 

–3.8 

–3.0 

–3.7 

–1.8 

–4.0 

–3.1 

–7.2 

–7.8 

–4.8 

–27.4 

–11.8 

Source: FDIC Summary of Deposits, June 30, 2017, to June 30, 2022. 

On a merger-adjusted basis, the results are reversed, reflecting that 

small banks—after accounting for asset growth and mergers—have 

opened offices on net. The largest banks reported the largest decline 

in offices from 2017 to 2022 (Table 7). Conversely, the smallest banks 

reported year-over-year increases in offices in each of the five years 

of analysis. 

Table 7 

When Adjusting for Mergers and the Movement of Banks Between Size Groups, 

the Smallest Banks Opened Offices on Net From 2017 to 2022 

Year-Over-Year Office Growth, Adjusted for Mergers (Percent) 

Bank Size 2018 2019 2020 2021 2022 

Assets Greater Than $250 Billion –2.8 –3.9 –2.5 –6.9 –5.6 

Assets $10 Billion to $250 Billion –3.9 –3.7 –3.6 –4.6 –4.7 

Assets $1 Billion to $10 Billion –0.9 0.1 0.0 –2.0 –0.9 

Assets Less Than $1 Billion 0.8 1.4 1.1 0.4 0.6 

2017 to 2022 

–20.1 

–18.8 

–3.7 

4.3 

Source: FDIC Summary of Deposits, June 30, 2017, to June 30, 2022. 

OFFICE CLOSINGS WERE 

RELATIVELY LESS FREQUENT 

IN RURAL COUNTIES 

The number of offices across all county types, and between community 

and noncommunity banks, continued to decline through June 30, 

2022. Among the three county types, both the number and the rate 

of net office closures were highest in metropolitan areas, followed by 

micropolitan areas and then rural areas, through June 30, 2022. 

Metropolitan areas contain the vast majority of bank offices, roughly 

62,000 of 79,000 total offices, or 78.6 percent. Between 2017 and 2022, 

banks reduced offices in metropolitan areas by 8,981 (12.6 percent). 

Community banks reduced offices in metropolitan areas at a slightly 

higher rate (13.7 percent) than did noncommunity banks (12.2 percent) 

(Table 8). As these figures are not adjusted for mergers, this does 

not mean that community banks closed 13.7 percent of offices in 

metropolitan counties in that time, but rather that 13.7 percent of their 

52 
QUARTERLY 2023 VOLUME 17, NUMBER 1 

offices closed or became offices of noncommunity banks through 

mergers or reclassification.8 

Micropolitan and rural county types fared slightly better than 

metropolitan areas in net office closings. Community banks serve 

micropolitan and rural areas with more offices than do noncommunity 

banks—72.2 percent of the office locations in rural areas and 

57.5 percent of the office locations in micropolitan areas are of 

community banks. 

Table 8 

The Number of Offices in All County Types Has Declined Over the Past Five Years 

Bank Designation 

Year-Over-Year Change in Offices, Not Adjusted for Mergers (Percent) 

2018 2019 2020 2021 2022 2017 to 2022 

Metropolitan 

Noncommunity Banks 

Community Banks 

All Banks 

–1.7 

–3.0

–2.1 

–1.7 

–3.1 

–2.1 

–1.1 

–3.4 

–1.7 

–4.9 

–1.7 

–4.0

–3.4 

–3.5 

–3.4 

–12.2 

–13.7 

–12.6 

Micropolitan 

Noncommunity Banks 

Community Banks 

All Banks 

–2.4 

–1.3 

–1.8 

–3.0

–0.6 

–1.7 

–0.9 

–2.0

–1.5 

–3.9 

–2.8 

–3.2 

–2.2 

–2.4 

–2.3 

–11.9 

–8.7 

–10.1 

Rural 

Noncommunity Banks 

Community Banks 

All Banks 

–3.3 

–0.6 

–1.3 

–0.8 

–1.1 

–1.0

0.4 

–2.0

–1.4 

–1.0

–2.3 

–2.0

–1.8 

–1.9 

–1.9 

–6.3 

–7.8 

–7.4 

All Noncommunity Banks 

Community Banks 

–1.9 

–2.2 

–1.7 

–2.2 

–1.0

–2.8 

–4.7 

–2.0

–3.2 

–2.9 

–11.9 

–11.6 

Source: FDIC Summary of Deposits, June 30, 2017, to June 30, 2022. 

On a merger-adjusted basis, community banks increased their offices 

by 1.7 percent between 2017 and 2022, while noncommunity banks 

reduced offices by 17.9 percent during that period (Table 9). In the year 

ending June 30, 2022, community banks closed a net 13 offices after 

adjusting for mergers, while noncommunity banks closed roughly 

2,500 offices, equating to an annual rate of decline of 4.7 percent across 

the three county types. Similar to merger adjustment of deposits, 

merger adjustment of offices tracks the net change in offices through 

time of a current cohort of banks and all the banks that the cohort 

acquired during the analysis period. The results of the merger-adjusted 

analysis just described indicate, in short, that community banks closed 

far fewer offices than noncommunity banks during the time period 

described. 

8 Such reclassifications are for FDIC research purposes and do not reflect any regulatory designation. 

53 
QUARTERLY 2023 VOLUME 17, NUMBER 1 

Table 9 

Community Banks Closed Very Few Offices in 2022 

County Type 

Year-Over-Year Change in Offices, Adjusted for Mergers (Percent) 

2018 2019 2020 2021 2022 2017 to 2022 

Metropolitan Noncommunity Banks 

Community Banks 

3.0 

0.6 

–3.2 

1.4 

–2.5 

1.0 

–5.4 

0.0 

–4.6 

0.1 

–17.4 

3.1 

Micropolitan Noncommunity Banks 

Community Banks 

–4.4 

0.4 

–4.4 

0.5 

–3.3 

0.0 

–6.7 

–0.5 

–5.1 

–0.1 

–21.7 

0.1 

Rural Noncommunity Banks 

Community Banks 

–4.4 

–0.1 

–3.6 

0.0 

–4.1 

–0.2 

–5.9 

–0.3 

–5.8 

–0.3 

–21.7 

–0.9 

All Noncommunity Banks 

Community Banks 

–3.2 

0.4 

–3.3 

0.9 

–2.6 

0.5 

–5.5 

–0.2 

–4.7 

0.0 

–17.9 

1.7 

Source: FDIC Summary of Deposits, June 30, 2017, to June 30, 2022. 

ALMOST ALL COUNTIES IN THE 

UNITED STATES HAVE AT LEAST 

ONE OFFICE OF AN FDIC-INSURED 

INSTITUTION 

Office locations are geographically widespread, with offices in 

99 percent of the counties in the United States. Counties with no office 

presence are sparsely populated, with populations ranging from 90 to 

8,100 residents as of the 2020 census. Of all U.S. counties with an office 

presence, 5 percent have a single office. Approximately 76 percent of 

single-office counties are rural and 65 percent of single-office counties 

are served by a community bank. Of the 1,279 rural counties with 

an office presence, 92 percent are served by at least one community 

bank, underscoring the importance of community bank presence in 

rural areas. 

MDIS, SUPPORTED BY AN 

INCREASE IN DEPOSITS, 

CONTINUED TO SERVE AN 

IMPORTANT PURPOSE 

MDIs play an important role in supporting growth in low- and 

moderate-income communities by creating jobs, growing small 

businesses, and building wealth.9 MDIs are primarily in areas 

characterized by dense populations, with 88.6 percent of MDI offices 

in metropolitan areas. Like community banks, MDIs typically have 

smaller geographic footprints than noncommunity banks and rely on 

core deposits to fund loan growth. Most MDIs (120 of 144) also met the 

FDIC’s definition of a community bank as of June 30, 2022.10 

From 2021 to 2022, banks of every MDI designation reported an 

increase in deposits (Table 10). Not adjusted for mergers, deposits 

rose 4.7 percent ($12.7 billion), with the largest percentage increases 

in institutions identified as multiracial (up 64.7 percent, or 

$164.2 million) and Native American (up 22.6 percent, or $1.1 billion). 

On a merger-adjusted basis, MDI deposits increased 5.2 percent 

($13.9 billion), with the largest percentage increases in institutions 

9 FDIC, Minority Depository Institutions Program, Mission-Driven Bank Fund. 

10The FDIC’s Statement of Policy Regarding Minority Depository Institutions defines an MDI as a federally insured depository institution for which (1) 51 percent or more of the 

voting stock is owned by minority individuals, or (2) a majority of the board of directors is minority and the community that the institution serves is predominantly minority. 

For more information about MDIs read: FDIC, “2019 Minority Depository Institutions: Structure, Performance, and Social Impact.” 

54 
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2023 VOLUME 17, NUMBER 1 

identified as multiracial (up 64.7 percent or $164.2 million) and Black 

(up 17.6 percent or $942.1 million).11 

The number of offices operated by MDIs declined slightly during the 

most recent SOD reporting period. Collectively, as of June 30, 2022, the 

number of MDI offices declined by ten, to 1,522 offices. This 0.7 percent 

decline in offices operated by MDIs was far less than the 3.1 percent 

decline in offices operated by all banks. The net decline in offices 

resulted from changes in MDI office networks, including 55 office 

openings and 65 office closings during the year ending June 30, 

2022. After adjusting for the effects of mergers, MDI offices declined 

by seven. 

Table 10 

MDIs Reported an Increase in Deposits on a Merger–Adjusted and Non–Merger–Adjusted Basis 

Designation 

Number of 

Banks in 2022 

Year-Over-Year Change in Deposits (Percent) Net Office Openings/Closings (Number) 

Not Adjusted for 

Mergers 

Adjusted for 

Mergers 

Not Adjusted for 

Mergers 

Adjusted for 

Mergers 

Asian 

Black 

Hispanic 

Native American 

Multiracial 

All MDIs 

73 

19 

30 

20 

2 

144 

4.8 

15.4 

3.2 

22.6 

64.7 

4.7 

6.3 

17.6 

2.8 

14.5 

64.7 

5.2 

5 

0 

–30 

14 

1 

–10 

14 

1 

–31 

8 

1 

–7 

Sources: FDIC Summary of Deposits, June 30, 2021, to June 30, 2022, and FDIC MDI List. 

Note: MDI is Minority Depository Institution. 

THE COVID-19 PANDEMIC 

CHANGED MIGRATION PATTERNS 

The COVID-19 pandemic fostered a work from home environment that 

allowed people to move further away from their offices, which changed 

migration patterns. Before the pandemic, people were generally 

moving out of the Northeast and Midwest, and into the South and West. 

However, from 2020 to 2021, people moved out of the Northeast and 

into the South at a faster rate, and began to move out of the West. 

Out-migration from 2020 to 2021 was led mostly by expensive, densely 

populated states, while in-migration was led by less densely populated 

states mostly in the South and West (Chart 3). Seven of the ten states 

leading out-migration were among the states with the highest cost of 

living in 2022.12 The District of Columbia, California, North Dakota, 

and Massachusetts experienced in-migration in the ten years before 

the pandemic but were among the top ten states leading out-migration 

from 2020 to 2021. All top ten states by in-migration had experienced 

in-migration in the ten years before the pandemic but experienced it at 

a much faster rate from 2020 to 2021. 

11 Of the six institutions that were designated as MDIs in 2021 but not in 2022, four merged into institutions that were not designated as MDIs in 2022. Two institutions merged 

into institutions of the same MDI type. Additionally, six institutions were designated as MDIs in 2022 that were not previously designated as MDIs in 2021. 

12 Cost of living data come from Missouri Economic Research and Information Center. 

55 
QUARTERLY 2023 VOLUME 17, NUMBER 1 

Chart 3 

Out-Migration in 2021 Was Led by Densely Populated States 

Source: U.S. Census Bureau. 

Note: The ten-year average is 2010 through 2020. 

-3.5 -2.5 -1.5 -0.5 0.5 1.5 2.5 

Idaho 

Montana 

Arizona 

South Carolina 

Delaware 

Florida 

Maine 

New Hampshire 

Utah 

Tennessee 

Maryland 

Alaska 

Massachusetts 

Louisiana 

North Dakota 

Hawaii 

California 

Illinois 

New York 

District of Columbia 

2021 Net Migration as a Share of Population (Percent) Ten-Year Average Net Migration as a Share of Population (Percent) 

Top Ten States by 

Out-Migration 

(2020-2021) 

Top Ten States by 

In-Migration 

(2020-2021) 

Drilling down to the MSA level shows similar patterns in 

out-migration, with mostly expensive, more densely populated 

cities also leading out-migration (Chart 4). The largest cities in 

California, New York, and Illinois drove out-migration, while MSAs 

in Florida as well as metropolitan areas in the Mountain West largely 

led in-migration. It is reasonable to assume that office trends would 

eventually follow population trends. 

Chart 4 

Source: U.S. Census Bureau. 

Note: The ten-year average is 2010 through 2020. 

Out-Migration in 2021 Was Led by More Expensive, Densely Populated Cities, 

While In-Migration Was Led by Southern Cities 

2021 Net Migration as a Share of Population (Percent) Ten-Year Average Net Migration as a Share of Population (Percent) 

Top Ten MSAs by 

Out-Migration 

(2020-2021) 

Top Ten MSAs by 

In-Migration 

(2020-2021) 

-6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 

The Villages, FL 

Punta Gorda, FL 

St. George, UT 

Coeur d'Alene, ID 

Homosassa Springs, FL 

North Port-Sarasota-Bradenton, FL 

Cape Coral-Fort Myers, FL 

Lakeland-Winter Haven, FL 

Port St. Lucie, FL 

Sebring-Avon Park, FL 

Chicago-Naperville-Elgin, IL-IN-WI 

Grand Island, NE 

Urban Honolulu, HI 

Los Angeles-Long Beach-Anaheim, CA 

New York-Newark-Jersey City, NY-NJ-PA 

Midland, TX 

San Jose-Sunnyvale-Santa Clara, CA 

San Francisco-Oakland-Berkeley, CA 

Odessa, TX 

Lake Charles, LA 

56 
QUARTERLY 2023 VOLUME 17, NUMBER 1 

THE NET CHANGE IN NUMBER OF 

OFFICES FOLLOWED MIGRATION 

PATTERNS 

Table 11 

The top ten MSAs by number of net office openings were concentrated 

in MSAs in less densely populated states, while net office closings 

were highest in the largest MSAs, similar to the trend of out-migration 

patterns (Table 11). Six of the cities in the top ten states or MSAs by 

out-migration were also in the top ten for net office closings. Larger 

MSAs historically have experienced higher net office closures, and 

migration due to the pandemic may have reinforced this trend.13 

While there was no overlap in the top ten MSAs by in-migration and 

top ten MSAs by net office openings, three of the top ten MSAs by 

net openings were within the top states by in-migration (NashvilleDavidson-Murfreesboro-Franklin, TN; Portland-South Portland, ME; 

Provo-Orem, UT). 

Office Closings Outpace Office Openings in Metropolitan Areas, and the Largest Cities Had the Most Net Office Closings 

Over the Past Year 

Top MSAs by Net Openings Net Openings Top MSAs by Net Closings Net Closings 

Minneapolis-St. Paul-Bloomington, MN-WI 7 New York-Newark-Jersey City, NY-NJ-PA* –218 

Jonesboro, AR 4 Washington-Arlington-Alexandria, DC-VA-MD-WV* –101 

Nashville-Davidson-Murfreesboro-Franklin, TN* 4 

Chicago-Naperville-Elgin, IL-IN-WI* –88 

Albuquerque, NM 2 

Auburn-Opelika, AL 2 Detroit-Warren-Dearborn, MI –79 

Bend, OR 2 Los Angeles-Long Beach-Anaheim, CA* –79 

Burlington-South Burlington, VT 2 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD –78 

Des Moines-West Des Moines, IA 2 Boston-Cambridge-Newton, MA-NH* –64 

Portland-South Portland, ME* 2 Miami-Fort Lauderdale-Pompano Beach, FL –62 

Provo-Orem, UT* 2 Atlanta-Sandy Springs-Alpharetta, GA –56 

Sioux Falls, SD 2 Baltimore-Columbia-Towson, MD* –44 

Source: FDIC Summary of Deposits, June 30, 2021, to June 30, 2022. 

Note: MSAs are metropolitan statistical areas. Asterisks denote MSAs that followed state-level or MSA-level migration trends. 

Patterns of net office openings and closings appear broadly consistent 

with migration patterns. In contrast, the data do not reveal any 

readily apparent correspondence between changes in the location of 

SOD-reported deposits and migration patterns. Possible explanations 

for the difference could include a lag effect in the location of offices 

that banks report deposits in, banks reporting deposits where the 

account was opened, or other factors such as the decreasing reliance by 

some customers on physical branches. Future analysis of deposit and 

office data relative to population levels and flows may be of interest. 

13 Joseph R. Harris III, Caitlyn R. Kasper, Christopher J. Raslavich, and Derek K. Thieme, “2019 Summary of Deposits Highlights,” FDIC Quarterly 14, no. 1 (2019): 31-43. 

57 
QUARTERLY 2023 VOLUME 17, NUMBER 1 

CONCLUSION The SOD Survey results for the year ending June 30, 2022, showed 

moderating deposit growth and net office closures from recent highs. 

As the structure of the banking industry has shifted over the past 

several years, so too has the composition of deposits and offices at 

FDIC-insured institutions. Larger institutions and noncommunity 

banks have reported strong deposit growth. The smallest institutions 

have declined in number, and so too have their deposits and offices. 

The comparatively high increase in deposits and comparatively low net 

office closures at larger banks resulted from mergers and movement 

of banks across asset size groups. A merger-adjusted analysis that 

focuses on identifying organic deposit growth and changes in the 

number of offices that are unrelated to mergers paints a different 

picture. Merger-adjusted deposit growth at the group of institutions 

designated the smallest as of June 30, 2022, and at community banks 

more broadly, exceeded that of their larger peers in the past year. 

Similarly, after accounting for the movement of banks in and out of 

size groups, and for mergers and acquisitions, smaller institutions 

reported much lower office reductions than larger institutions. Deposit 

growth in micropolitan and rural areas continued to outpace deposit 

growth in metropolitan areas in 2022, while net office closings were 

highest in the largest MSAs, similar to out-migration trends. Like 

their community bank peers, MDIs reported deposit growth in the 

year ending June 30, 2022, allowing them to continue to lend to the 

communities they serve. 

Authors: 

Angela Hinton 

Senior Financial Analyst 

Division of Insurance and Research 

Michael Hoffman 

Economic Analyst 

Division of Insurance and Research 

Caitlyn R. Kasper 

Financial Analyst 

Division of Insurance and Research 

Joycelyn Lu 

Economic Research Assistant 

Division of Insurance and Research 

58