Deposits

Financial regulation scholar Mark Flannery said in a new research paper that small banks would be more likely to be negatively impacted.

The rush to onboard millions of business depositors in such a short period can strain bank resources, lead to mistakes, and cause some banks to fall behind in conducting due diligence on risky customers.

The Missouri bank was downgraded by credit rating agencies in the wake of last month's bank failures, but CEO Mariner Kemper is pushing back. "We have way, way overblown the impact of two failed banks," he said.

Some 77% of banks did not did not record significant deposit inflows or outflows following Silicon Valley Bank's failure, according to a survey of executives at 567 institutions. The findings highlight the stability of many smaller banks' deposit bases.

The California bank, which was hit hard by last month's banking crisis, has partially rebuilt its deposit base. It reported a first-quarter loss, but one that was smaller than some analysts expected.

CEO Rajinder Singh said battered competitors are "throwing off" both talent and customers, creating a chance for the Miami Lakes, Florida, bank to pick up new business.

Federal officials should have protected both banks' uninsured depositors by following the law's carefully designed framework for dealing with failures of systemically important banks.

The San Francisco bank, on shaky ground after two regional peers failed last month, said that customers pulled more than 40% of their deposits last quarter. It's been forced to turn to more expensive sources of funding, which analysts said will squeeze its profitability.

The Dallas-based company is intentionally shedding certain deposit relationships that don't align with its new business model. Total quarterly deposits fell 12.6% year over year, but they rose 1% after excluding the relationships targeted for reduction, according to the bank.

Main Street companies, particularly those owned by women and minorities, depend on the flexibility of community and regional banks for their survival.