The highly anticipated release of Q1bank call reports did not disappoint! Given a highly dynamic three months in the banking sector (see SVB, Signature, First Republic), deposits movements across banks were expected. But, digging into the data revealed unexpected trends!
Smaller regional banks were greatest recipients of deposits
In aggregate, banks with $1-10 billion of assets (as of 12/31/2022) saw the greatest - and only - deposit increase!
Several mega banks saw the largest outflows
Among banks with the top 10 deposit outflows, there were some expected names like First Republic. Despite all the concern of disposition leaving small banks and going to the G-SIBs, banks like Bank of America, Citi and Wells Fargo saw notable outflows.
Regional flows included surprising results
The Midwest and Mid-Atlantic regions were net attractors of deposits while nearly all other regions saw net outflows.
Notable success moving from uninsured to insured deposits
Given the focus on uninsured deposits as a contributing factor to recent bank runs, it's not surprising to see many banks make a concerted effort to shift their deposit base to insured products.The following chart shows banks with at least 25% uninsured deposits in Q4(x-axis) compared to the precent dollar change in insured deposits quarter-over-quarter. Over 70% of banks showed a dollar increase of insured deposits (most of the others saw a net deposit outflow to combat any shift towards insured).
There’s a lot more to dig into, so please stay tuned for a follow-up post!
Note: above analysis based on FFIEC data for Q4 2022 and Q1 2023.
Our flexible partnership options can support a quick, bank-branded deployment or a fully embedded bank digital experience. Please reach out to discuss the best approach for your bank.