Total deposits across US banks fell on a year-over-year basis at June 30 for the first time on record, according to Summary of Deposits data from the Federal Deposit Insurance Corp.
The US banking industry's deposits contracted 4.8% year over year to $17.269 trillion, as bank runs contributed to three large bank failures in the first half of the year. The drop was the first in a data set that dates back to 1994.
The majority of large US banks posted declines in their deposit balances year over year, with almost 30% of the $871.60 billion industrywide decline attributable to the Big Four banks, JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co. and Citigroup Inc.
Top 15 deposit holders
JPMorgan maintained its position as the largest deposit holder in the country for the third consecutive year. Total deposits at the bank fell 2.8% year over year to $2.068 trillion as of June 30, despite an inflow from the purchase of First Republic Bank on May 1.
"Our core view remains modest deposit declines across the franchise" as quantitative tightening continues, JPMorgan CFO Jeremy Barnum said in an earnings call July 14. JPMorgan's market share rose by 24 basis points year over year to 11.98%.
Bank of America, which was the largest US bank by total deposits in 2020, saw its market share fall by 3 basis points to 10.93%, as its deposits dropped 5.0% to $1.888 trillion.
Wells Fargo's deposits fell 6.0% to $1.377 trillion, pushing its market share down by 10 basis points, while Citigroup's deposits ticked down by 0.8% to $757.14 billion.
Among the top 15 deposit holders, Charles Schwab Corp. reported the largest year-over-year decrease in deposits of 31.1% to $304.79 billion, attributable mostly to outflows from brokerage accounts.
Bank of Montreal logged the largest gain at 51.7%, pushing total deposits up to $202.24 billion. Much of the increase came from the acquisition of Bank of the West, completed Feb. 1.
SVB Financial Group, which was the 15th-largest US bank by total deposits on June 30, 2022, fell off the list this year after its subsidiary, Silicon Valley Bank, failed March 10. First Citizens BancShares Inc. acquired the surviving Silicon Valley Bridge Bank NA on March 26.
Branches
US banks continued to shrink their branch footprint, adapting digitalization while cutting costs. As of June 30, the country's branch count stood at 77,796, compared to 79,172 in the year prior and 96,339 in 2013.
Deposit growth by state
At the state level, South Dakota posted the largest year-over-year growth in deposits at 11.3%, followed by North Carolina at 11.1%. American Samoa and Virginia saw their deposits plunge 98.8% and 20.4%, respectively.
