Deposits

Further interest-rate hikes by the Federal Reserve will force Bank of America to continue repricing deposits, which fell 6.5% in the fourth quarter compared with a year earlier, executives said.

When U.S. banks fell like dominoes during the Great Depression, the cause was often a classic run: Depositors withdrew cash en masse amid fears that lenders were amassing huge losses on bad loans and investments. The cryptocurrency era just put a new twist on that.

At the start of 2022, banks sat atop a flood of deposits. But as the year progressed, they faced greater pressure to pay higher rates, and the trends that drove the rapid shift show no signs of abating.

The agency is needlessly raising banks' costs at a time of severe economic uncertainty.

While Silvergate said this month it has "a resilient balance sheet and ample liquidity," and analysts call its financials sound, the bank is today contending with a question as difficult as the one that led it to crypto in the first place: whether the experiment was worth it.

After focusing its de novo branching plans on the Carolinas in recent years, the Cincinnati-based bank is ready to shift its attention to Florida and — eventually — to Nashville and Atlanta.

The Connecticut bank plans to add interLINK to its diverse stable of deposit-gathering businesses. A community bank in Texas had previously reached a deal to purchase the platform, but that transaction fell apart in September.

Seattle Bank built CD Valet to be an unbiased resource for top certificate of deposit rates that cannot be influenced by advertising dollars.

Protecting depositors' stablecoin holdings could be the difference between providing the economy with a new boost and creating unnecessary drag.

The Federal Reserve's campaign to tighten financial conditions has resulted in notably increased borrowing by U.S. banks at the central bank's discount window, normally a last-resort funding source.

Advisors overseeing the group's ruins have more broadly pointed to a potential commingling of digital assets, raising concerns about misuse of customer funds and making ties between the two firms a likely focus for regulators and investigators probing the collapse.

TAB Bank's debit account, which rewards users with partial stock shares, is boosting the company's appeal among consumers who are younger, tech-savvy and underbanked.

The quickly shifting deposit picture — an effect of the Federal Reserve's rapid interest rate increases — is prompting many banks to raise rates to prevent depositors from leaving. Several institutions saw their loan-to-deposit ratios jump above 100% during the third quarter.

The San Francisco company is now estimating a net interest margin of 2.45% for the fourth quarter, down from 2.71% three months earlier. The profitability metric has suffered as customers ask for higher rates on their deposits.

Arbor Bank in Nebraska will customize CD rates and maturities for customers and even show them other options from competitors.

Average deposits at the Northern California bank are expected to decline again in the fourth quarter as startups' spending outpaces the venture capital investments they raise. CEO Greg Becker acknowledged the near-term headwinds but said the bank's fundamentals remain solid.

The interest paid on consumer deposits has barely risen despite the Federal Reserve's aggressive rate hikes, writes Sen. Jack Reed, D-R.I., in letters to seven of the largest U.S. banks including JPMorgan Chase and Wells Fargo.