The FDIC conducts research to understand the performance of community banks, the evolution of community banks within the broader banking industry, and the challenges faced by community banks. Research published to this site is based on data available as of the date of publication. These data are subject to periodic revision and update.
| Quarterly Banking Profile: Community Bank Performance Section |
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| This section of the Quarterly Banking Profile provides insight into the condition and performance of community banks. The last 12 months of the Quarterly Banking Profile Community Bank Performance section are provided below. Older issues are located in the Archives section of this page. |
| Fourth Quarter 2025 |
| Third Quarter 2025 |
| Second Quarter 2025 |
| First Quarter 2025 |
| Banking Issues in Focus: Featured Articles |
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| Banking Issues in Focus provides in-depth analysis of topical banking issues. These range from timely analysis of economic and banking trends at the national and regional level that may affect the risk exposure of FDIC-insured institutions to research on the issues affecting the banking system and the development of regulatory policy. Recent articles highlighting community banks are provided below. In the past, these articles were featured in FDIC Quarterly Volumes. |
| U.S. Industrial Transition and Its Effect on Metro Areas and Community Banks - PDF As alternative forms of energy and lower carbon technologies emerge, the economies of areas with concentrations in industries exposed to these changes may undergo transition. The FDIC study “U.S. Industrial Transition and Its Effect on Metro Areas and Community Banks (PDF)” explores industrial transitions in the United States between 1970 and 2019. The economies and demographics of many Metropolitan Statistical Areas (metros) changed significantly during the five-decade span. The national economy shifted away from the manufacturing sector, and industries such as steel and textiles were hollowed out by the forces of automation and globalization. In the study, the authors create a novel metric called a Transition Score to measure industrial transition across metros, use this metric to determine which metro areas were most affected by industrial transition, and compare the economic and banking performance of affected areas to areas with lower levels of transition. |
| 2023 Summary of Deposits Highlights - PDF The 2023 Summary of Deposits article evaluates deposit and office trends by bank asset size group, community and noncommunity bank designation, and county type. Responses from the 2023 Summary of Deposits survey showed deposit declines of 4.8 percent between June 2022 and June 2023, the first annual decline in nearly 30 years. Deposit declines were greatest at large banks, while community banks reported deposit growth. The survey also showed the office closure rate improved from a year earlier, and community banks opened offices in metropolitan, micropolitan, and rural counties. |
| 2022 Summary of Deposits Highlights - PDF The 2022 Summary of Deposits article evaluates deposit and office trends by bank asset size group, community and noncommunity bank designation, and county type. A special feature analyzes office openings and closings in locations that experienced high in- and out-migration during the COVID-19 pandemic. Responses from the 2022 Summary of Deposits survey reflected a moderation in deposit growth following extraordinary growth in 2020 and 2021. The moderation in the annual deposit growth rate came with a slight deceleration in bank office closures. More than two years since the onset of the COVID-19 pandemic, migration patterns may be influencing office locations. |
| The Effects of Population Change on Community Bank Deposits and Loans - PDF For decades, U.S. rural county population generally declined while metropolitan county population grew robustly. The 2020 pandemic disrupted these trends, with potentially significant implications for community banks. Based on pre-pandemic data, community bank deposit growth correlated strongly with population growth. However, deposit growth kept pace with population in micropolitan counties but lagged in micropolitan and rural counties. The response of community bank loan portfolios to population growth also displayed different patterns among county types. Commercial real estate loan shares rose and residential loan shares fell, but at different rates. Commercial and industrial loan shares rose only in micropolitan counties. Agricultural loan shares rose only in metropolitan counties. If new population patterns persist, these relationships may materially affect the business models of community banks. |
| Community Bank Performance in Manufacturing-Concentrated States - PDF The manufacturing industry has undergone fundamental changes in recent decades that are important to communities that rely on manufacturing firms for employment and local economic growth. This article highlights areas where manufacturing is most concentrated, discusses long-term trends, and analyzes community bank performance in manufacturing-concentrated areas. |
| Consumer Lending Through the Pandemic and the Recovery - PDF The COVID-19 pandemic pushed the economy into what was, by some measures, the worst contraction on record. However, consumer lending trends did not deteriorate as they usually do during a recession. Consumer loans are a relatively small share of community bank portfolios, totaling $66 billion in fourth quarter 2021. However, for lenders that specialize in consumer lending, trends in the consumer landscape are of great importance. Performance of all types of bank consumer loans improved thanks to government support, forbearance programs, and tighter underwriting standards for new loans. In both the consumer and auto loan categories, the noncurrent rate was lower in community banks than in noncommunity banks. While caution is warranted, and changes in the pandemic and responses could weaken the outlook, the future of consumer lending appears strong. |
| 2021 Summary of Deposits Highlights - PDF The 2021 Summary of Deposits data reflect the effects of the COVID-19 pandemic, changing spending patterns, and government stimulus programs on deposit levels and the number of branch openings and closures. This article evaluates changes in community banks compared with those of noncommunity banks. A special feature discusses branch openings and closings of minority depository institutions. This article also evaluates the likely effect on branch levels of increased availability and use of mobile and electronic banking applications. Responses from the 2021 Summary of Deposits survey show that deposit growth rates for the industry were higher than pre-pandemic growth rates. However, deposit growth rates have moderated compared with the record highs in 2020. Over the past year, deposit growth rates have been higher among community banks compared with those of noncommunity banks. In 2021, the decline in the number of branches accelerated from a year ago, with branches of noncommunity banks closing at a higher rate compared with that of community banks. |
| Center for Financial Research Publications |
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Inside the Boardroom: Evidence from the Board Structure and Meeting Minutes of Community Banks Community banks are critical for local economies, yet research on their corporate governance has been scarce due to limited data availability. We explore a unique, proprietary dataset of board membership and meeting minutes of failed community banks to present several stylized facts regarding their board structure and meetings. Community bank boards have fewer members and a higher percentage of insiders than larger publicly traded banks, and experience little turnover during normal times. Their meetings are held monthly and span about two hours. During times of distress, community bank boards convene less often in regularly scheduled meetings in lieu of impromptu meetings, experience higher turnover, particularly among their independent directors, and their meeting tone switches from neutral to significantly negative. Board attention during distressed times shifts towards discussion of capital and examination oversight, and away from lending activities and meeting formalities. |
Deposit Insurance and Bank Funding Stability: Evidence from the TAG Program We study the unlimited deposit insurance provided by the Transaction Account Guarantee (TAG) Program. We find that size and financial performance were key drivers of program participation, with large banks and more solvent banks much more likely to opt out. We show that opting out of the program caused strong and persistent declines in noninterest-bearing deposits (NIBDs), showing that the additional insurance stabilized funding for program participants. Our results suggest that targeted deposit insurance protections are valued by banks, especially community banks and financially weaker banks, and can be successful in stemming deposit outflows during periods of stress. |