WASHINGTON–Deposits continue to grow at FDIC-insured banks, but the pace of growth has slowed, according to the agency’s latest report.
FDIC Quarterly data or the third quarter of 2018 reveal 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 FDIC data show year-over-year, merger-adjusted deposit growth at community banks was 4.9%, almost identical to the 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%, the FDIC said.
Similar to the decline in credit unions, 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, according to the FDIC; deposits per branch increased 5.9% from $131 million in 2017 to $139 million in 2018.
The FDIC further reported the number of bank branches has continued its steady decline since 2009. For the year ended June 2018, the number of branches was down by 1,786 (2.0%) to 88,053.