A majority of the largest banks in the US reported a decline in total assets in the second quarter as the banking industry saw assets decline for the fourth time in the last five quarters.

Altogether, the 50 largest US banks and thrifts reported a $254.50 billion decrease in aggregate assets quarter over quarter, with 28 banks reporting sequential declines. By comparison, the 50 largest US banks and thrifts in the first quarter of 2023 reported asset growth of $775.30 billion from the fourth quarter of 2022.

The institutions reported a combined $22.765 trillion in assets as of June 30, according to S&P Global Market Intelligence data.

To conduct this analysis, S&P Global Market Intelligence examined the largest US banks and thrifts by assets with a deposits-to-assets ratio of at least 25% or at least $30 billion in deposits as of quarter-end.

To compile a pro forma ranking, S&P Global Market Intelligence calculates pro forma assets after accounting for pending M&A transactions as well as transactions that closed after quarter-end. To be included in pro forma adjustments, the deal value must be over $1 billion or involve assets or deposits in excess of $5 billion. Loan portfolio deals are not included because of a general lack of data on both deal consideration and the impact on total assets.

To view an Excel spreadsheet containing the top 50 US banks and thrifts in the second quarter of 2023, click here.

. This article is a part of the worldwide bank ranking series. The world's largest 100 banks, 2023 Asia-Pacific's 50 largest banks by assets, 2023 Latin America and the Caribbean's 50 largest banks by assets, 2023 Europe's 50 largest banks by assets, 2023 The Middle East and Africa's largest 50 banks by assets, 2023

Combined assets of Big 4 drop

Aggregate assets at the largest four US banks fell by $221.99 billion, or 1.9%, from the first quarter of 2023.

JPMorgan Chase & Co., the largest US bank by total assets, reported a 2.7% sequential decrease, while assets at Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. fell by 2.2%, 1.3% and 0.5%, respectively.

Collectively, the country's top 10 banks accounted for roughly 97% of the top 50's total asset decline.

BOK Financial, First Horizon top growth list

Of the 35 banks with assets between $50 billion and $500 billion, 18 reported asset growth during the second quarter.

Tulsa, Okla.-based BOK Financial Corp. posted the largest increase in the period as its assets swelled by 8.2%. It was followed by Memphis-based First Horizon Corp., which notched 5.4% growth. First Horizon's growth was helped by its deposit campaign, following the recent bank failures and the termination of its sale to The Toronto-Dominion Bank.

During a second-quarter earnings presentation, CEO Bryan Jordan said First Horizon made more than 50,000 prospecting calls to new and existing clients, growing its client base by 4% and adding $5.8 billion in new-to-bank funds. Those totals including $3.5 billion from more than 32,000 new clients, pushing the bank's ending deposit balances up 3% year to date.

Meanwhile, Tupelo, Miss.-based Cadence Bank logged the highest decrease in total assets at 5.5%. Moody's recently downgraded its outlook on Cadence Bank from stable to negative, citing "sources of strain" in the banking sector, including funding and profitability pressures related to the rapid tightening in monetary policy and inverted Treasury curve, regulatory capital weaknesses and elevated risks connected with exposure to commercial real estate.

Cadence expects its loan growth to slow to an annualized mid-single-digit growth rate for the second half of the year, according to Chairman and CEO James Rollins III.

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Growth outlook

According to S&P Global Market Intelligence's latest 2023 US Bank Outlook Survey, most bankers were pessimistic about the near-term economic outlook. Almost 68% of survey participants expect a recession within the next nine months, including 12.9% of respondents who think the US economy is already in a recession.

Bankers have also grown less optimistic on lending, following the anemic loan growth at big US banks in the second quarter. Analysts at Jefferies said in a mid-August note to clients said that "loan growth should slow in the rest of 2023 as banks exercise caution and demand moderates."