QUARTERLY 2024 VOLUME 18, NUMBER 1

63 

2023 SUMMARY OF DEPOSITS HIGHLIGHTS

INTRODUCTION •	 Domestic deposits declined 4.8 percent in the year 

ending June 2023

•	 Deposit declines were greatest at large banks

•	 Community banks reported deposit growth over 

the year

•	 Community banks opened offices in metro, micro, 

and rural counties

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

June 30, 2023, reflected a decline in deposits following extraordinary 

growth in the years ending June 2020 and June 2021, and more moderate 

growth in the year ending June 2022. The surge in deposits from the 

fiscal and monetary stimulus during the pandemic, coupled with 

decreased consumer spending, began to decline in 2022. These deposits 

began leaving as interest rates increased, and again in the weeks 

following three bank failures in early 2023. Total domestic deposits of 

FDIC-insured institutions decreased 4.8 percent in the year ending June 

2023, the first annual decline in deposits since 1995, while the number 

of banks decreased 2.6 percent.1 The largest rate of deposit decline 

occurred at institutions with assets greater than $250 billion and 

institutions located in metropolitan counties. Deposit outflows largely 

subsided by second quarter 2023, declining slightly from $18.7 trillion 

to $18.6 trillion between March 31, 2023, and June 30, 2023. By June 30, 

2023, deposit levels were still 9.2 percent above where they would have 

been using the pre-pandemic (June 2010 to June 2019) average annual 

growth rate of 5.4 percent.

The SOD Survey also showed a deceleration in office closures. Between 

June 2022 and June 2023, the number of offices fell 1.7 percent, 

continuing a 14-year trend of decline. This was a slower rate of office 

closures than the 3.8 percent in 2021 and the 3.2 percent in 2022. Banks 

located in metropolitan counties reported the largest decline in offices, 

a 1.9 percent decrease. Community banks reported a 0.3 percent increase 

in offices, while noncommunity banks reported a 2.7 percent decrease.

1 An annual decline in deposits refers to a net decline in domestic deposits over the previous four quarters. The last annual decline in deposits occurred in March 1995, when 

deposits declined 0.1 percent between March 31, 1994, and March 31, 1995. The last quarterly decline in deposits—0.2 percent—occurred in second quarter 2018.
QUARTERLY 2024 VOLUME 18, NUMBER 1

64 

TOTAL DEPOSITS DECLINED FOR THE 

FIRST TIME SINCE 1995

Between June 2022 and June 2023, deposits decreased $874.1 billion to 

$17.2 trillion (4.8 percent).2 This was the first year-over-year decrease 

in deposits since 1995 and a notable shift in deposit trends since the 

2008 financial crisis (Chart 1). The increase in deposit balances in 

2020 and 2021 followed changes in consumer behavior and fiscal and 

monetary responses stemming from the COVID-19 pandemic. However, 

by 2022, fiscal and monetary assistance had waned and deposit 

growth neared its pre-pandemic rate. The annual decline in deposits 

in 2023 followed a decline that began in second quarter 2022 and had 

moderated by second quarter 2023.

2 Quarterly deposit data come from the FDIC Quarterly Banking Profile, which has published Consolidated Reports of Condition and Income (Call Report) data since 1984. 

SUMMARY OF DEPOSITS OVERVIEW

The Summary of Deposits (SOD) Survey 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 

domestic 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 survey 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 record-keeping 

practices. 

The following are examples of procedures for assigning deposits to offices:

yDeposits assigned to the office in closest proximity to the accountholder’s address

yDeposits assigned to the office where the account is most active

yDeposits assigned to the office where the account was opened

yDeposits assigned to offices for manager compensation or similar purposes

Other methods for assigning deposits to offices may also be used. 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.
QUARTERLY 2024 VOLUME 18, NUMBER 1

65 

A confluence of factors contributed to the decline in deposits. Higherthan-normal inflation in late 2021 led to contractionary monetary 

policy beginning in early 2022. From January 2022 to June 2023, the 

federal funds rate increased 500 basis points while the overall cost of 

deposits increased only 166 basis points.3 Lower yields on deposit rates 

lagged other market interest rates, such as those paid by money market 

funds, contributing to the decline in deposits. The rate of deposit 

decline increased following three bank failures in the first half of 2023, 

causing the largest quarterly decline in deposits since Consolidated 

Reports of Condition and Income (Call Report) data collection began in 

1984.4 Most of the quarterly deposit decline was in uninsured deposits, 

which include deposits in excess of the standard deposit insurance 

coverage limit of $250,000 per depositor, per FDIC-insured bank, per 

ownership category.5

3 The cost of deposits represents annualized total interest expense on deposits as a percentage of average deposits. The cost of deposits was 0.12 percent in fourth quarter 2021 

and 1.78 percent in second quarter 2023. Source: Call Report data from December 31, 2021, to June 30, 2023.

4 Quarterly Call Report data and annual SOD data became more standardized in 1984.

5 “Insured Institution Performance,” FDIC Quarterly 17, no. 2 (2023):1–7, https://www.fdic.gov/analysis/quarterly-banking-profile/qbp/2023mar/qbp.pdf#page=1.

-5

0

5

10

15

20

25

-4

0

4

8

12

16

20

2007 2011 2015 2019 2023

Deposits (Le Axis)

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

Source: FDIC Summary of Deposits, June 30, 2007, to June 30, 2023.

$ Trillions Percent

Deposits Declined in 2023 Aer a Near-Record Increase in 2020

Chart 1
QUARTERLY 2024 VOLUME 18, NUMBER 1

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DEPOSIT DECLINES WERE GREATEST 

AT LARGE BANKS

Banks with assets greater than $10 billion reported deposit declines in 

2023, while banks with less than $10 billion in assets reported slight 

growth or no growth (Table 1).6 Banks with total assets greater than 

$250 billion reported the largest decline in deposits, $675 billion or 

6.8 percent. These 14 institutions represented about 77.5 percent of the 

total decline in the industry’s deposits in the year ending June 30, 2023. 

Banks with assets between $1 billion and $10 billion reported 1.2 percent 

deposit growth, and the smallest banks reported slight deposit declines 

of 0.1 percent. 

Despite the deposit declines from second quarter 2022 through second 

quarter 2023, the five-year trend in deposit growth remained strong 

across bank asset size categories, with average annual compoundadjusted deposit growth of more than 6.5 percent between 2018 and 

2023 for all size categories. Banks with total assets less than $1 billion 

reported deposit growth at a cumulative 47.6 percent, and banks with 

total assets between $1 billion and $10 billion reported deposit growth 

at a cumulative 56.1 percent. The largest institutions reported the 

slowest cumulative deposit growth, 37.1 percent.

6 All growth rates for deposits and offices are merger-adjusted unless specified otherwise.

Table 1

Large Bank and Noncommunity Bank Deposit Growth Fell Behind Other Groups

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

Number of 

Banks

2019 2020 2021 2022 2023 2018 to 2023 2023

Assets Greater Than $250 Billion 3.1 24.5 9.6 4.6 –6.8 37.1 14

Assets $10 Billion to $250 Billion 4.9 19.6 11.4 4.8 –4.1 40.5 142

Assets $1 Billion to $10 Billion 6.3 18.4 12.7 8.8 1.2 56.1 840

Assets Less Than $1 Billion 4.5 16.0 13.5 7.3 –0.1 47.6 3,649

Bank Designation

Noncommunity Banks 3.9 22.6 10.3 4.8 –5.6 38.9 455

Community Banks 5.5 16.5 13.5 8.4 1.0 52.8 4,190

Source: FDIC Summary of Deposits, June 30, 2018, to June 30, 2023. 

Note: Bank count is as of the June 30, 2022, to June 30, 2023, period.
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67 

DEPOSIT GROWTH WAS SUSTAINED 

FOR COMMUNITY BANKS

Community banks continued to report deposit growth in 2023, while 

noncommunity banks reported a decline in deposits. Community bank 

year-over-year deposit growth was 1 percent or $22.4 billion, and 

noncommunity bank deposits fell 5.6 percent or $892.8 billion year 

over year. Community banks are smaller institutions, generally under 

$1 billion in total assets, with a business model focused on a limited 

geographic area.7 By contrast, noncommunity banks are defined as 

banks with nontraditional business models or banks that serve three or 

more Metropolitan Statistical Areas (MSAs) or four or more states. As 

of June 30, 2023, there were 4,196 community banks holding 13 percent 

of total domestic deposits and 457 noncommunity banks holding 87 

percent of total domestic deposits. Over the five-year period from 2018 

to 2023, both noncommunity and community banks reported average 

annual deposit growth of more than 5 percent, resulting in 38.9 percent 

cumulative deposit growth for noncommunity banks and 52.8 percent 

cumulative deposit growth for community banks.

METROPOLITAN AND RURAL BANKS 

REPORTED DEPOSIT DECLINES

Annual deposit growth rates in micropolitan areas slowed for the year 

ending June 30, 2023, while deposits declined in metropolitan and rural 

areas (Table 2).8 Growth rates for offices in metropolitan areas declined 

5.2 percent after increasing 5.2 percent one year earlier, and growth 

rates in rural areas decreased 2.5 percent after increasing 4.3 percent 

the previous year. Growth rates in micropolitan areas slowed from 5.9 

percent to 1.1 percent.

From 2018 to 2023, offices in metropolitan areas reported the highest 

deposit growth rate of the three county types, with a 40.8 percent 

cumulative increase in deposits. Banks in micropolitan areas had the 

second-highest five-year growth at 40.5 percent. Banks in rural areas 

had the lowest cumulative deposit growth at 30.9 percent. As of 2023, 

offices in metropolitan areas continued to hold the majority of total 

deposits ($15.8 trillion or 91.6 percent of total deposits), followed by 

offices in micropolitan areas ($796.3 billion or 4.6 percent of total 

deposits) and rural areas ($653.4 billion or 3.8 percent of total deposits).9

7 Community banks are defined by the 2012 FDIC Community Banking Study, https://www.fdic.gov/resources/community-banking/report/2012/2012-cbi-study-full.pdf. 

The definition encompasses small banks and larger banks that focus on traditional lending and deposit-taking activities.

8 The U.S. Census Bureau defines micropolitan Core-Based Statistical Areas (CBSAs) as statistical areas that consist of one or more counties “associated with at least one urban 

cluster of at least 10,000 but less than 50,000 population.” Metropolitan CBSAs consist of one or more counties that “contain a city of 50,000 or more inhabitants, or contain a 

Census Bureau-defined urbanized area (UA) and have a total population of at least 100,000.”

9 CBSAs were redrawn in 2023, such that geographical coverage differed between 2023 and 2020. The 2023 SOD metro-micro-rural designations reflect the new 2023 census 

delineations, while 2020–2022 SOD reports used the 2020 census delineations. Therefore, reported 2023 findings cannot be cross-compared with previous years.
QUARTERLY 2024 VOLUME 18, NUMBER 1

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NUMBER OF BANKS AND OFFICES 

CONTINUED TO DECREASE

Between June 2022 and June 2023, the number of banks declined 

from 4,771 to 4,645 and the number of offices declined from 79,214 to 

77,786 (Table 3). Although the number of banks and offices continued 

to decrease, offices per bank have remained relatively stable because 

the rate of office consolidation has not outpaced the rate of bank 

consolidation. Banks that acquire other banks will often keep some 

office locations to retain depositors of the acquired bank.

A 4.8 percent decline in deposits outpaced the 2.6 percent decline in 

the number of banks, resulting in a 2.3 percent decline in deposits per 

institution. The average balance of deposits per office decreased 3.1 

percent in 2023 to $221.3 million.

Table 2

Deposits in Micropolitan Counties Rose and Deposits in Metropolitan and Rural Counties Fell in 2023

County Type Year-Over-Year Change (Percent)

2018 2019 2020 2021 2022 2023 2018 to 2023

Metropolitan 3.9 4.2 22.5 10.6 5.2 –5.2 40.8

Micropolitan 3.7 3.9 14.6 10.1 5.9 1.1 40.5

Rural 2.1 3.0 12.7 11.0 4.3 –2.5 30.9

Source: FDIC Summary of Deposits, June 30, 2018, to June 30, 2023. 

Note: Data are not adjusted for mergers.

Table 3

Deposits Decreased While Offices Per Bank Remained Stable in 2023

Year

Number of 

Banks

Number of 

Offices

Offices Per 

Bank

Deposits

($ Billions)

Deposits 

Per Institution

($ Millions)

Deposits 

Per Office

($ Thousands)

2018 5,541 88,065 15.9 12,262 2,213 139,242

2019 5,303 86,382 16.3 12,772 2,408 147,854

2020 5,066 84,972 16.8 15,546 3,069 182,958

2021 4,950 81,781 16.5 17,196 3,474 210,271

2022 4,771 79,214 16.6 18,091 3,792 228,385

2023 4,645 77,786 16.7 17,217 3,706 221,333

Source: FDIC Summary of Deposits, June 30, 2023. 

Note: Data are not adjusted for mergers.
QUARTERLY 2024 VOLUME 18, NUMBER 1

69 

THE RATE OF OFFICE CLOSURES 

CONTINUED TO DECLINE AND 

RETURNED TO PRE-PANDEMIC 

LEVELS

The rate of office decline was stable from 2012 to 2020, ranging from 

0.9 percent to 2.2 percent. The rate increased after 2020 to 3.8 percent in 

2021 and 3.2 percent in 2022. The number of offices declined 1.7 percent 

between June 2022 and June 2023, slightly above the pre-pandemic 

average decline of 1.4 percent (Chart 2).10 Only 482 (10.4 percent) banks 

reported net office closures in 2023, while 293 (6.3 percent) reported net 

office openings, and 3,861 (83.1 percent) reported no net change in office 

count.

LARGE BANKS REPORTED THE 

LARGEST REDUCTION IN OFFICES

The largest banks reported the largest decline in offices in the year 

ending June 30, 2023, a reduction of 3.5 percent or 843 offices (Table 4). 

Banks with assets between $10 billion and $250 billion reported an 

annual office reduction of 2.7 percent or 590 offices. Conversely, banks 

with assets between $1 billion and $10 billion reported no change, and 

the smallest banks reported a year-over-year increase in offices of 0.7 

percent or 108 offices. From 2018 to 2023, banks with assets between $10 

billion and $250 billion reported a total decline in offices of 17.9 percent 

and banks with assets over $250 billion reported a total decline in 

offices of 20.6 percent, while the smallest banks increased their number 

of offices 4.2 percent. Banks with assets between $1 billion and $10 

billion reported a modest decline in offices from 2018 to 2023, closing a 

net of only six offices in 2023 and reporting a cumulative reduction of 

just 2.9 percent or 545 offices over the five-year period.

10 The period June 2010 to June 2019 is used throughout this article as the pre-pandemic average 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. See Angela Hinton, Michael Hoffman, Caitlyn R. Kasper, and Joycelyn Lu, “2022 Summary of Deposits 

Highlights,” FDIC Quarterly 17 no. 1, (2023):48–55, https://www.fdic.gov/analysis/quarterly-banking-profile/fdic-quarterly/2023-vol17-1/fdic-v17n1-4q2022.pdf.

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

Chart 2

-100,000

-50,000

0

50,000

100,000

150,000

2007 2011 2015 2019 2023

Number of Oices (Le Axis)

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

Source: FDIC Summary of Deposits, June 30, 2007, to June 30, 2023.

-4

-2

0

2

4

6

8

-6

Number of Oices Percent
QUARTERLY 2024 VOLUME 18, NUMBER 1

70 

COMMUNITY BANKS OPENED OFFICES 

IN ALL CENSUS CATEGORIES IN 2023

In the year ending June 30, 2023, community banks opened a net 82 

offices, with net office increases reported in all three county types 

(Table 5). Community banks increased offices by 1.5 percent between 

2018 and 2023. On the other hand, noncommunity banks closed 1,413 

offices in 2023, resulting in an annual decline of 2.7 percent across 

the three county types. Noncommunity banks reduced offices by 17.5 

percent between 2018 and 2023.

ALMOST ALL COUNTIES IN THE 

UNITED STATES HAVE AT LEAST ONE 

OFFICE OF AN FDIC-INSURED 

INSTITUTION

Office locations of FDIC-insured institutions are geographically 

widespread, with offices in 99 percent of the counties in the United 

States. Of all U.S. counties with an office presence, 4.7 percent have a 

single office. Most counties with a single office are rural (76.5 percent) 

and a majority of these counties are served by a community bank (65.8 

percent). Of the 1,279 rural counties with an office presence, 65 percent 

are served by at least one community bank, underscoring the ongoing 

importance of community banks in rural areas.

Table 4

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

the Smallest Banks Opened Offices on Net From 2018 to 2023

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

2019 2020 2021 2022 2023 2018 to 2023

Assets Greater Than $250 Billion –3.9 –2.5 –6.9 –5.6 –3.5 –20.6

Assets $10 Billion to $250 Billion –3.7 –3.6 –4.6 –4.8 –2.7 –17.9

Assets $1 Billion to $10 Billion 0.1 0.0 –2.0 –1.0 0.0 –2.9

Assets Less Than $1 Billion 1.4 1.1 0.4 0.5 0.7 4.2

Source: FDIC Summary of Deposits, June 30, 2018, to June 30, 2023. 

Table 5

Community Banks Added Offices in 2023 and From 2018 to 2023, While Noncommunity Bank Offices Declined

County 

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

Number of 

Offices

2019 2020 2021 2022 2023 2018 to 2023 2023

Metropolitan Noncommunity Banks –3.2 –2.5 –5.4 –4.6 –2.6 –17.0 44,207

Community Banks 1.4 1.0 0.0 0.0 0.2 2.6 15,760

Micropolitan Noncommunity Banks –4.3 –3.1 –6.5 –5.6 –2.7 –20.4 3,821

Community Banks 0.3 0.0 –0.6 –0.3 0.5 –0.1 5,108

Rural Noncommunity Banks –3.5 –4.3 –5.8 –5.8 –3.7 –21.1 3,006

Community Banks 0.2 –0.2 –0.2 –0.3 0.4 –0.1 5,884

All Noncommunity Banks –3.3 –2.6 –5.5 –4.7 –2.7 –17.5 51,034

Community Banks 0.9 0.5 –0.2 –0.1 0.3 1.5 26,752

Source: FDIC Summary of Deposits, June 30, 2018, to June 30, 2023. 
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71 

NON-MERGER-ADJUSTED ANALYSIS Data that are non-merger-adjusted provide value by showing shifts 

in industry composition. In this raw non-merger-adjusted data, the 

smallest banks and the largest banks reported declining deposit 

balances in 2023, while banks with assets between $1 billion and $10 

billion reported marginal deposit growth (Table 6). Banks with more 

than $250 billion in assets in June 2023 reported 67.5 percent growth in 

deposits between 2018 and 2023, while banks with less than $1 billion in 

assets reported a 4.2 percent decline in deposits during that period.

MERGER ADJUSTING OVERVIEW

Merger adjusting Summary of Deposits (SOD) data is a way to analyze annual SOD data while holding the underlying 

set of institutions constant within designated categories like size groupings or community bank status. Nonmerger-adjusted SOD growth rates reflect the effects of changes in the universe of banks that fall into each category. 

For example, an unadjusted SOD deposit growth rate between June 30, 2019, and June 30, 2020, would compare the 

deposits of the 9 banks with more than $250 billion in assets that existed as of June 30, 2019, with the 13 that existed 

as of June 30, 2020. Without adjusting for mergers and organic asset growth that can contribute to the change in the 

number of banks in this size group, it might appear that the largest banks are winning the competition for deposits 

or that small banks are losing their deposit base. However, over time, some smaller bank deposits “become” larger 

bank deposits as some smaller banks are acquired by larger banks, two smaller banks merge to form a larger bank, 

or some smaller banks cross the threshold into a larger asset size group. Without controlling for the change in bank 

categorization in these instances, some smaller banks’ deposits would contribute to the growth of the larger bank 

category and subtract from the growth of the smaller bank category.

To control for these effects, bank deposit data can be “merger adjusted” 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 

or movement between designated categories. 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.

In this article, merger adjusting is conducted in one-year increments. For example, the merger-adjusted growth 

rate of the largest institutions (those with more than $250 billion in assets) between 2022 and 2023 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 2022 and 2023. Any bank that was not involved in a merger, 

but became a bank with more than $250 billion in assets in that time period, is assigned to the $250 billion group in 

the previous period. 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 2023.

For a comprehensive primer on the 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, https://www.fdic.gov/

analysis/quarterly-banking-profile/fdic-quarterly/2019-vol13-1/fdic-v13n1-4q2018-article.pdf.
QUARTERLY 2024 VOLUME 18, NUMBER 1

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Community banks and noncommunity banks reported deposit 

declines of 4.8 percent in the year ending June 30, 2023. From 2018 to 

2023, community banks reported deposit growth of 24.5 percent and 

noncommunity banks reported deposit growth of 43.2 percent. Much 

of the deposit growth for noncommunity banks was a result of merger 

activity and re-designations in 2020, when there were 57 community 

banks acquired by noncommunity banks and 33 community banks 

re-designated as noncommunity banks.

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

largest net decline from 2018 to 2023 in the offices they operated. This 

contrasts with the merger-adjusted results for offices operated by the 

smallest banks, which increased over this timeframe. Banks with less 

than $1 billion in assets as of June 2023 reported a 26.1 percent decline 

in offices between 2018 and 2023 (Table 7). Banks with assets between 

$1 billion and $10 billion increased offices, reporting a 4.1 percent 

increase over this period.

Table 7

The Smallest Banks Reported the Largest Decline in Offices From 2018 to 2023 on a Non-Merger-Adjusted Basis

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

2019 2020 2021 2022 2023 2018 to 2023

Assets Greater Than $250 Billion –3.9 10.2 –6.9 –3.0 2.6 –2.0

Assets $10 Billion to $250 Billion 0.8 –9.4 –1.4 –3.8 –6.8 –19.3

Assets $1 Billion to $10 Billion 0.0 5.0 –0.2 –1.9 1.1 4.1

Assets Less Than $1 Billion –4.6 –10.6 –6.1 –4.0 –3.8 –26.1

All Banks –1.9 –1.6 –3.8 –3.2 –1.7 –11.7

Source: FDIC Summary of Deposits, June 30, 2018, to June 30, 2023. 

Table 6

Large Banks Reported the Largest Deposit Growth From 2018 to 2023 on a Non-Merger-Adjusted Basis

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

Number of 

Banks

2019 2020 2021 2022 2023 2018 to 2023 2023

Assets Greater Than $250 Billion 3.9 41.2 9.6 5.5 –1.3 67.5 14

Assets $10 Billion to $250 Billion 7.0 3.1 13.8 6.0 –12.5 16.5 142

Assets $1 Billion to $10 Billion 1.4 18.9 10.1 3.4 1.5 39.2 840

Assets Less Than $1 Billion –2.8 –0.7 3.9 1.2 –5.6 –4.2 3,649

Bank Designation

Noncommunity Banks 4.5 23.9 10.4 5.3 –4.8 43.2 455

Community Banks 2.2 8.9 12.1 4.8 –4.8 24.5 4,190

Source: FDIC Summary of Deposits, June 30, 2018, to June 30, 2023. 

Note: Bank count is as of the June 30, 2022, to June 30, 2023, period.
QUARTERLY 2024 VOLUME 18, NUMBER 1

73 

Table 7 illustrates how non-merger-adjusted data for offices 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 2.6 

percent between June 2022 and June 2023, while the number of offices 

of banks with between $10 billion and $250 billion in assets declined 6.8 

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 7 reflect not just openings and closures of offices, but shifts in the 

ownership of offices resulting from mergers and asset growth.

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, 2023. 

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.

Metropolitan areas contain the vast majority of bank offices, roughly 

60,000 of 78,000 total offices, or 77.1 percent. Between 2018 and 2023, 

banks reduced offices in metropolitan areas by 8,558 (12.5 percent). 

Community banks reduced offices in metropolitan areas at a slightly 

higher rate (14.5 percent) than did noncommunity banks (11.8 percent) 

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

not mean that community banks closed 14.5 percent of offices in 

metropolitan counties in that time, but rather that 14.5 percent of 

their offices closed or became offices of noncommunity banks through 

mergers or re-designations.

Table 8

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

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

Number of 

Offices

2019 2020 2021 2022 2018 to 2023 2023

Metropolitan Noncommunity Banks –1.7 –1.1 –4.9 –3.4 –1.2 –11.8

Community Banks –2.9 –3.3 –1.7 –3.6 –3.8 –14.5

All Banks –2.1 –1.7 –4.1 –3.4 –1.9 –12.5

Micropolitan Noncommunity Banks –2.7 –0.5 –3.7 –3.0 0.5 –9.2

Community Banks –0.9 –2.0 –2.8 –2.4 –2.1 –9.8

All Banks –1.7 –1.4 –3.2 –2.6 –1.0 –9.5

Rural Noncommunity Banks –0.7 –0.8 –2.0 –3.0 0.4 –6.0

Community Banks –1.4 –2.1 –2.2 –1.8 –2.0 –9.1

All Banks –1.1 –1.7 –2.1 –2.2 –1.2 –8.1

All Noncommunity Banks –1.7 –1.0 –4.7 –3.3 –1.0 –11.2

Community Banks –2.2 –2.8 –2.0 –3.0 –3.1 –12.5

Source: FDIC Summary of Deposits, June 30, 2018, to June 30, 2023. 
QUARTERLY 2024 VOLUME 18, NUMBER 1

74 

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—66.2 percent of the office locations in rural areas and 57.2 

percent of the office locations in micropolitan areas are of community 

banks.

CONCLUSION Large banks and small banks, community banks and noncommunity 

banks, and banks in metropolitan areas and rural areas all reported 

deposit declines and office closures in 2023. Banks with less than 

$1 billion in assets and community banks maintained or grew their 

deposits between June 30, 2022, and June 30, 2023. Banks with more 

than $10 billion in assets reported the largest deposit declines, driven 

by declines in uninsured deposits.

Smaller institutions reported net office openings in the year ending 

June 30, 2023, while larger institutions continued to close offices. 

Community banks also reported net office openings in all census 

categories, while noncommunity banks reported office closings in 

all census categories. Community banks continue to operate more 

offices than noncommunity banks in rural counties and have closed 

offices at slower rates in those counties. The relatively large presence 

of community banks in rural counties reflects their important role in 

serving local communities.

After adjusting for mergers, banks growing into and out of asset 

categories, and census re-designations, banks of all sizes, community 

and noncommunity banks, and banks in metropolitan, micropolitan, 

and rural areas all reported strong deposit growth over the past five 

years. The banking industry continues to shift due to mergers and 

acquisitions, new bank charters, bank failures, and re-designations of 

geographical areas. 

Authors:

Michael Hoffman

Economic Analyst

Division of Insurance and Research

Camille Keith

Financial Analyst

Division of Insurance and Research

Joycelyn Lu

Financial Analyst

Division of Insurance and Research

LaShawn Reed-Butler

Financial Analyst

Division of Insurance and Research