Deposits

As deposits grow scarcer, the Stamford, Connecticut-based bank's acquisition of interLINK earlier this month promises to yield billions of dollars in core funding it can put to work paying down borrowings or purchasing securities, CEO John Ciulla says.

Almost a fifth of U.S. banks are offering savings rates of 2% or more, a huge spike from a year ago, according to new data. Banks are paying more out of fear their customers will flee to competitors offering higher rates.

While branch closings remain the norm throughout the industry, the hunt for suddenly scarce deposits is prompting some community banks to move in the opposite direction and expand their branch networks.

The McLean, Virginia-based bank is building its deposit base — in contrast with many banks that are starting to see outflows. But the growth is accompanied by rising interest expenses, which are expected to cut modestly into profit margins this year.

The Birmingham, Alabama, bank expects up to $5 billion in additional deposit declines in the first half of 2023 but is hopeful for potential growth in funding later this year.

The parent company of Silicon Valley Bank, which has been mired in deposit challenges, expects little near-term change in the deployment of venture capital dollars, which executives say will keep putting pressure on SVB's balance sheet.

The Buffalo, New York, bank expects outstanding loans to grow by as much as 9% in 2023. Deposits, on the other hand, could fall.

The Dallas-based bank, whose deposit base is more commercial-focused, has seen significant outflows in deposits over the past year. But last quarter's declines were "better than we expected," and there are other signs that the environment may moderate this year, its CFO said.

The Canadian banking giant also announced that Nandita Bakhshi, the San Francisco bank's CEO, will join the board of directors of its U.S. holding company and serve as a special advisor on integration.

The Mississippi bank said it fell short of funding its loans with deposits in the fourth quarter of 2022. This year, it plans to narrow its focus to core relationship lending.