Deposits Rise, Branches Shrink, and Banks Embrace M&A to Cross Thresholds

U.S. bank deposits grew 4.0% to $18.1 trillion in the year ended June 30, a sharp acceleration from just 0.8% growth the prior year and the second straight annual increase after 2023’s decline, S&P Global Market Intelligence wrote. At the same time, banks continued shrinking their branch networks, with total branches falling 0.8% year over year to 76,120.

Another S&P article discussed how banks nearing key asset thresholds are increasingly turning to M&A to grow past those limits and capture economies of scale in today’s friendlier regulatory climate.