U.S. Bank Deposits Drop by $870 Billion

U.S. BANK DEPOSITS DROP BY $870 BILLION
Bank deposits fell about $870 billion on a year-over-year basis for the first time in records going back to 1994, according to the Federal Deposit Insurance Corp.’s Summary of Deposits data compiled by KBRA Financial Intelligence (KFI). U.S. banking industry deposits fell about 4.8% in the year ended June 30 to $17.3 trillion. Depositors are moving their cash to higher-yielding accounts after more than a decade of rock bottom interest rates. All four of the largest banks—JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co., and Citigroup Inc.—saw their deposits decline in the period.

Regional Gainers Come Into Focus
The New York metro area continues to hold the most deposits among all metropolitan statistical areas (MSA), but in 2023 several regional cities including Salt Lake City; Miami; and Sioux Falls, South Dakota, entered the top 20 MSAs by total deposits compared to their ranking in 2000. Click the chart below to see the full animation.

KFI calculated the growth rates of deposits and bank branches by state and U.S. territories over a five-year period. Among all states, Texas had the largest compound annual growth rate at 14.6%, with its deposit base growing to $1.5 trillion, while Nevada saw the largest decline with deposits falling 19.5% to $117.5 billion.

The number of U.S. bank branches fell in every state in the period, with Oregon losing the most with a 5.7% decline, according to KFI. Click here to see the full list of deposits and bank branches by state.