In its FDIC Quarterly for the third quarter, 2018, the federal deposit insurer said total deposits held by FDIC-insured institutions rose from $11.81 trillion in June 2017 to $12.26 trillion in June 2018 – an increase of $450 billion, or 3.8%.
The agency said that both community and noncommunity banks reported a decline in merger-adjusted deposit growth rates during the year ended June 2018. Year-over-year, merger-adjusted deposit growth at community banks was 4.9%, slightly less than their five-year annual deposit growth rate of 5.1%. For noncommunity banks, year-over-year, merger-adjusted deposit growth was 3.6%, well below their five-year annual deposit growth rate of 5.5%.
Between 2013 and 2018, the FDIC said, noncommunity banks increased total deposits by 30.8% from $7.988 billion to $10.445 billion, and community banks increased deposits 28.3% from $1.417 billion to $1.818 billion on a merger-adjusted basis.
The FDIC also pointed out that the number of institutions declined from 5,787 to 5,541 and the number of offices declined from 89,839 to 88,053 over the one-year period. Deposits per institution rose 8.4% to $2.2 billion in 2018, the FDIC said; deposits per office increased 5.9% from $131 million in 2017 to $139 million in 2018.
“The number of offices operated by FDIC-insured institutions has declined steadily since June 2009,” the agency said. “The trend continued during the year ended in June 2018 as the number of offices declined by 1,786 (2.0%) to 88,053.” The FDIC said that is the second-fastest rate of decline in U.S. bank offices since the trend began. Also, it exceeds the five-year annual decline of 1.8%. The number of offices operated by FDIC-insured institutions has declined by 8,277, or 8.6%, over the past five years, the agency said.