Core deposits are an important but often elusive concept with implications for both interest rate risk and liquidity. A strong core deposit base can help insulate a bank from interest rate swings and market turmoil. Accurately defining and measuring core deposits remain significant challenges for regulators, bank managers, and analysts. How can recent experience help…

Last year’s bank failures brought increased attention to large, uninsured deposits and banks’ reliance on them as a source of funding. Taking a data-driven approach, I looked at the recent trend in uninsured deposits, the types of banks with the highest (and lowest) concentrations of uninsured accounts, and whether and to what extent deposit concentrations…

Regulators closed Philadelphia-based Republic First Bank on April 26, 2024. Fulton Bank, NA assumed most of Republic First’s deposits and assets in an FDIC-assisted transaction. The FDIC’s Inspector General will likely conduct a Failed Bank Review that will try to identify the causes of Republic First’s failure. In the meantime, here are some takeaways based…