S&P Global Market Intelligence releases inaugural deposit rankings for U.S. community banks

Rhea-AI Summary

S&P Global Market Intelligence has released its first-ever U.S. Community Bank Deposit Rankings for 2024, highlighting banks with high concentrations of noninterest-bearing deposits as top performers. The rankings evaluate banks based on eight key metrics, including a new deposit efficiency metric.

In the Small Community Banks category (assets under $3B), Titan Bank leads with 46.79% noninterest-bearing deposit concentration, followed by Western Bank (59.17%) and Tejas Bank. For Large Community Banks ($3B-$10B assets), Stride Bank tops the list with 88.8% noninterest-bearing deposits, followed by First Community Bankshares and Amalgamated Financial Corp (50.10%).

The evaluation metrics include noninterest-bearing deposits ratio, cost of interest-bearing deposits, deposit beta, time deposits ratio, CD maturities, deposits to liabilities, deposit growth, and deposit efficiency.

Positive

• Introduction of comprehensive deposit rankings system providing valuable market insights
• Stride Bank showed remarkable growth from $700M to $3.74B in assets (2019-2024)
• First Community Bankshares maintained low cost of interest-bearing deposits at 0.85%

Negative

• None.

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):

1. 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.
2. 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.
3. 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):

1. 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.
2. 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.
3. 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.

About S&P Global Market Intelligence

At S&P Global Market Intelligence, we understand the importance of accurate, deep and insightful information. Our team of experts delivers unrivaled insights and leading data and technology solutions, partnering with customers to expand their perspective, operate with confidence, and make decisions with conviction.

S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information, visit www.spglobal.com/marketintelligence.

Media Contact  
Kate Smith
S&P Global Market Intelligence 
+1 781 301 9311
Katherine.smith@spglobal.com or press.mi@spglobal.com 

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SOURCE S&P Global Market Intelligence

FAQ

What are the top 3 large community banks in S&P Global's 2024 deposit rankings?

According to S&P Global Market Intelligence's 2024 rankings, the top 3 large community banks are Stride Bank NA (1st), First Community Bankshares Inc. (2nd), and Amalgamated Financial Corp. (3rd).

What percentage of noninterest-bearing deposits does Stride Bank (SPGI ranked #1) have?

Stride Bank, ranked #1 in the large community bank category, maintains an 88.8% noninterest-bearing deposit concentration as of September 30, 2024.

How does S&P Global calculate the new deposit efficiency metric?

The deposit efficiency metric is calculated by comparing noninterest expense (excluding amortization and impairment) less service charges on deposits to average deposits.

What are the 8 metrics used in S&P Global's 2024 bank deposit rankings?

The rankings use: 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.

Which bank leads S&P Global's 2024 small community bank rankings?

Titan Bank NA leads the small community bank category with a 46.79% noninterest-bearing deposit concentration as of September 30, 2024.