During calendar 2024, aggregate domestic deposits at our nation’s banks increased 2.3%, but some banks, community banks in particular, stand out with deposit growth exceeding 100%.
All community banks rated at least 3½-Stars with deposit growth that exceeded 45% can be found in this week's issue of Jumbo Rate News. Many of these banks grew deposits to fund loan demand, and many did so without the help of an acquisition.
These banks range in size from just $35 million in assets to over $3.5 billion in assets. While a handful of the banks featured in this issue hale from the east or west coast, the vast majority are from up and down the center states, right in the geographic "middle" of the continental U.S.
Community Banks are Open for Deposits
Despite of a decline in both time deposits and brokered deposits (which were down every quarter of 2024), domestic deposits at our nation’s banks increased 1.2% during the fourth quarter 2024 and 2.3% over the year. (While the amount of estimated uninsured deposits was disturbingly high (up 5.4% in 2024), we will leave that topic for another day.
Today’s focus is on strong community banks that are increasing deposits so that, as savers, JRN readers have more banks to look at to place their deposits. To that end, the 50 community banks listed on page 5 are all rated at least 3½-Stars (most are higher) and they all increased their deposits by more than 45% during calendar 2024.
Two of the banks on the list, not surprisingly, are JRN listees:
5-Star Column N.A., Chico, CA (58224) also operates as Northern California National Bank (which is how you will find it on our rate pages). Northern California Bank (or NorCal) was first introduced to our readers in 2009 (JRN 26:12). At that time, it had tangible assets of $72.2 million.
Today, Column N.A.’s assets total $734.9 million. How? Back in 2021, NorCal was quietly purchased by a local family, the Hockeys. William Hockey, CEO, was a co-founder of Plaid, a well-known financial infrastructure company (JRN 41:33).
The new owners changed the name of the bank, but it was not until 2022 that they began using the new name, along with a new website. Column N.A. is geared towards builders and developers. In fact, it doesn’t look much like a bank at all. That’s what Norcal is for.
It may not be traditional, but it is working. Column N.A. has earned Bauer’s recommended rating (5-Stars or 4-Stars) for 68 consecutive quarters. In the past four years, it has more than doubled both its assets and deposits. While it did lose money for a short period after the purchase, it has been profitable for the last eight quarters.
4-Star Newtek Bank NA, Miami, FL (18734) is an online only bank now. As we reported last December, Newtek Bank seems to reinvent itself about every 20 years. Established in 1963 as Flushing National Bank, Flushing, NY, in 1982 it became National Bank of New York City, NY while moving its headquarters to Manhattan. Another move and another name change occurred in January of 2023, which resulted in Newtek Bank in Miami (JRN 41:47).
Since its move to an online only platform, Newtek bank’s assets have grown from $208 million to $1.2 billion. Deposits did the same, ending 2022 at $141.6 million and ending 2024 over $1 billion.
When it first joined our rate surveys back in 2017 as National Bk of NYC, its assets were just $222 million.
Two other banks are being added to our rate surveys this week based on this list. They are:
4-Star First Bank, Strasburg, VA (6917) saw its assets grow nearly 42% and its deposits nearly 47% during 2024. Most of that was during the fourth quarter. By the end of the year, First Bank had total assets exceeding $2 billion and deposits of $1.8 billion. Its leverage capital ratio (CR) is 7.95% and its Bauer’s adjusted CR is 7.62%.
First Bank did post a small loss during the fourth quarter but was profitable over the year. It has earned Bauer’s recommended rating for 40 consecutive quarters.
The other, 4-Star Table Rock Community Bank, Kimberling City, MO (58300) also witnessed the majority of its 137% 2024 deposit growth during the fourth quarter. Its assets grew 147% over the year, but loans grew the most at more 168%. Nearly half of Table Rock CB’s loans are in the relative safety of home loan mortgages.
Total assets at Table Rock now exceed $400 million and deposits are over $350 million. Its leverage CR of 7.36% is nearly the same as its Bauer’s Adjusted CR (7.31%), so loan quality is quite good. Table Rock CB has earned Bauer’s recommendation for the past 30 quarters.
Several others on page five that are not listed in JRN, increased their deposits by a surprising degree, considering they did not acquire another institution to grow them.
With total assets of just $61 million, 5-Star Community State Bank, Bradley, AR (5619) is smaller than the others we have mentioned. Yet, its growth is just as impressive (Assets: 56%; Deposits: 58% and loans: 61%). Community State Bank has a leverage CR of 14.74% and a Bauer’s adjusted CR of 14.58%
Not to be outdone, 4-Star Capra Bank, Dubuque, IA (16363) grew its assets and deposits both by over 160%. Its loans grew 335%. (No wonder it is growing its deposits). Total assets at Capra Bank now exceed $560 million while deposits are approaching $500 million. Its leverage and Bauer’s Adjusted CR are both 11.9%.
Now, the clincher. 4-Star Legends West Bank, Lewellen, NE (5425) reported 2024 asset growth of 114%; its loans grew 142% and deposit growth was just shy of 187%. It is the community bank with the highest percent of deposit growth listed on page 5. Assets total $79.6 million and Legends West has a leverage CR of 17.6% and a Bauer’s Adjusted CR of 15.5%. What it does not have is brokered deposits.
