Rankings include new deposit efficiency metric
measuring cost of bank operations
NEW
YORK, Feb. 5, 2025 /PRNewswire/ -- Banks with
high concentrations of noninterest-bearing deposits proved to have
the most enviable deposit franchises in 2024 according to the
inaugural 2024 U.S. Community Bank Deposit
Rankings from S&P Global Market Intelligence. The
rankings assign a premium to efficient operations and reduced
reliance on borrowings and certificates of deposit.
"Deposits represent the true value of a banking franchise," said
Nathan Stovall, director of
financial institutions research, S&P Global Market
Intelligence. "Analyzing different deposit franchises at this
point in the rate cycle highlights which banks' deposits performed
the best during the Federal Reserve's tightening cycle."
Top Small Community Banks (Assets Under $3 Billion):
- Titan Bank, NA: Titan Bank led the small community bank
category, boasting a remarkable noninterest-bearing deposit
concentration of 46.79% as of September 30,
2024. The bank has demonstrated a consistent average deposit
growth of 5.4% over the last eight quarters.
- Western Bank, Artesia, New
Mexico: Western Bank secured the second spot with a
noninterest-bearing deposit concentration of 59.17% as of
September 30, 2024. The company
outperformed its peers in all eight metrics analyzed in the
rankings.
- Tejas Bank: Tejas Bank rounded out the top three with a low
cost of interest-bearing deposits and strong deposit efficiency
ratio. The latter measures noninterest expense, excluding
amortization and impairments, less service charges on deposits
against average deposits.
Top Large Community Banks (Assets Between $3 Billion and $10
Billion):
- Stride Bank, NA: Stride Bank took the top spot in the large
community bank category, achieving an
impressive noninterest-bearing deposit concentration of 88.8%.
The bank has experienced substantial growth, increasing its assets
from $700 million in 2019 to
$3.74 billion as of September 30, 2024.
- First Community Bankshares Inc.: First Community
Bankshares secured the second position. The bank, which has a
number of rural markets in its footprint, reported a cost of
interest-bearing deposits of just 0.85% for the 12 months ended
September 30, 2024.
- Amalgamated Financial Corp.: With a focus on impact segments,
Amalgamated Financial Corp. earned the third spot, showcasing a
high concentration of noninterest-bearing deposits at 50.10%
as of September 30, 2024.
The rankings were based on weighted averages of eight metrics:
noninterest-bearing deposits to total deposits, cost of
interest-bearing deposits, interest-bearing deposit beta, time
deposits to total deposits, CDs maturing in 12 months to total
deposits, deposits to liabilities, average deposit growth and
deposit efficiency. The new deposit efficiency metric is calculated
by comparing noninterest expense excluding amortization and
impairment less service charges on deposits to average deposits.
The ratio captures how effectively a bank operates its deposit
franchise beyond just interest expenses.
Click here to view the S&P Global Market Intelligence's
2024 U.S. Large Community Bank Deposit Rankings. Click
here to view the S&P Global Market Intelligence's 2024
U.S. Small Community Bank Deposit Rankings.
S&P Global Market Intelligence's opinions, quotes, and
credit-related and other analyses are statements of opinion as of
the date they are expressed and not statements of fact or
recommendation to purchase, hold, or sell any securities or to make
any investment decisions, and do not address the suitability of any
security.
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S&P Global Market Intelligence
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Katherine.smith@spglobal.com or
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SOURCE S&P Global Market Intelligence
