- Community banking organizations (CBOs)_ rely heavily on core deposits with over 86.6 percent of total deposits considered core as of 1Q 2026,_ greatly exceeding the percentage of core deposits at the largest organizations (above $100 billion) but similar to regional organizations ($10 to $100 billion).
- Core deposits as a percentage of total deposits declined from highs in 2021 down to a low in 2024, the lowest level since deposit insurance coverage was increased in 2010. Core deposits have since remained stable, but are below the 15-year median of 89.6 percent.
- While banking organizations above $10 billion in total assets have also experienced declines over the past five years, they have increasingly relied on core deposits as a funding source, intensifying External Linkdeposit competition concerns for CBOs. The core deposit ratio for regional organizations has increased, moving closer to their 15-year median and exceeding that of CBOs at 87.6 percent as of 1Q 2026. The ratio at the largest organizations remains well above their 15-year median, but below that of CBOs, at 79.2 percent as of 1Q 2026.
Questions or comments? Please contact KC.SRM.SRA.CommunityBankingBulletin@kc.frb.org
Endnotes
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1 Community banking organizations are defined as having less than $10 billion in total assets.
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2 Core deposits as defined by the FFIEC Uniform Bank Performance Report include transaction accounts, savings accounts, money market deposit accounts, and non-brokered time deposits below $250,000.
The views expressed are those of the authors and do not necessarily reflect the positions of the Federal Reserve Bank of Kansas City or the Federal Reserve System.
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