U.S. bank deposits increased 5.4% year-over-year through June 30, 2026, with more than 200 banks reported deposit growth exceeding 20%.
While the nation's four largest banks hold 35% of all domestic deposits and generated 39% of total industry deposit growth, none posting deposit growth above 20%.
Community banks remain a major contributor wand accounted for more than 75% of banks reporting deposit growth above 20%.
JRN by Bauer 43:39, October 7, 2026
Community Banks Lead the Charge in Deposit Growth
The last couple of weeks we have been focused on bank mergers and acquisitions and how they bolster the assets of the acquiring institution. Obviously, those transactions also boost deposits but today we want to focus specifically on deposit growth. Industrywide, bank deposits grew 5.4% during the 12 months ended June 30, 2026. Over 200 banks reported much more robust deposit growth - exceeding 20% - during that timeframe. And while many, as we reported last week, grew via mergers and acquisitions (M&A), there were many others that grew organically.
Let’s begin by mentioning that our nation’s four largest banks account for over one-third (35%) of all domestic bank deposits. While none of these four banks had 20% (or more) deposit growth during the twelve-month period, together, they accounted for 39% of the total bank deposit growth. (The highest was 4-Star Wells Fargo Bank, NA, Sioux Falls, SD (3511), which reported year-over-year deposit growth of 11.8% and the lowest, 4-Star Bank of America, NA, Charlotte, NC (3510), reported a mere 0.6% increase during that time.
That means 61% of the total deposit growth went to the rest of the industry. Some banks, like 5-Star Beacon Bank & Trust, Boston, MA (17798), are growing deposits via M&A. Beacon actually made our top five countdown of largest M&A transaction of 2025 (JRN 43:01) by acquiring three northeast banks. The acquisitions increased the bank’s assets by 255% and deposits by more than 300%. That would be all good except Beacon B&T’s estimated uninsured deposits have ballooned to over $7 billion, an increase of almost 400%.
4-Star VersaBank USA, NA, Holdingford, MN (10160) (formerly Stearns Bank of Holdingford) reported the most deposit growth during the 12 months noted – at almost 565%! (We reported on this one before as well (43:14)). VersaBank Holdings (Canada) acquired Stearns Bank of Holdingford, MN in 2024 and, 20 months later, after converting itself into an entirely online bank, sold what was left of Stearns Bank Holdingford. The deposit growth has not subsided one bit at VersaBank but, ALL of its deposits are now from brokers.
Brokers can certainly help a bank raise deposits, but they can also be an expensive source. Since VersaBank has no physical branches to maintain, it may be able to spend more per deposit dollar brought in.
5-Star Sofi Bank, N.A., Cottonwood Heights, UT (26881) was recently featured in an American Banker article as the first “bank with fintech roots to crack the top 50 list of U.S. banks with the most deposits” (9/22/26). As we reported in April 2025, SoFi Technologies acquired Golden Pacific Bank, N.A., Sacramento, CA, and injected $750 million in capital to pursue its national digital plan. Sofi Bank kept Golden Pacific’s three physical branches and community bank business but opened a new headquarter office in Utah (JRN 42:16).
Since that transaction (2022) Sofi Bank has grown exponentially; its deposits were up over 57% during the past 12 months. Other banks of its size averaged deposit growth of just 8.66%. As we mentioned last month, though, Sofi has a wealth of products available on its website, deposits are just a small portion (JRN 43:35). If you want FDIC insurance coverage, make sure you stick to the deposits.
4-Star Safra National Bank of New York, New York City, NY (26876) came to the United States and was established in New York in 1987 but the Safra family already had a global presence that started in Syria in the 1800s. Today, in addition to its Fifth Avenue office in NYC, Safra NB of NY has offices in Boston, Los Altos, California and two in South Florida.
Far from being a community bank, Safra’s focus is high-and-ultra-high-net-worth individuals, families and businesses. It is a private bank built on long-term relationships. Between July 2025 and June 2026, Safra’s deposits grew by 53% while other banks of its size grew by only about 7%.
5-Star River Valley Community Bank, Yuba City, CA (58276) is a two decade-old community bank (established June 26, 2006). Today it has five branch locations in the area north of Sacramento. “From helping small businesses grow to supporting local events and charitable causes, River Valley Community Bank,” the true community bank that it is, “remains dedicated to strengthening the communities it calls home.”
Also, as a community bank, River Valley grows the old-fashioned way – with hard work. Its deposit growth of 28.2% outpaced that of its peers nearly six-fold. When the community does well, so does the community bank that helps it. In fact, over 75% of the banks reporting deposit growth of 20% or greater last year were community banks.