A majority of the largest US banks posted increases in assets in the first quarter as failures and a terminated M&A transaction shook up the top 50 rankings.

Of the 50 largest US banks and thrifts, 37 reported quarter-over-quarter increases in total assets while 13 reported declines, 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 first 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 The Middle East and Africa's 30 largest banks by assets, 2023Europe's 50 largest banks by assets, 2023 The Middle East and Africa's largest 50 banks by assets, 2023

Combined assets of Big 4 increase

Aggregate assets of the Big Four US banks increased by $498.61 billion, or 4.5%, from the fourth quarter of 2022.

Led by 8.5% asset growth at JPMorgan Chase & Co., the largest US bank's total assets were adjusted $232.94 billion higher to reflect its acquisition of First Republic Bank on May 1, solidifying its position as the "go-to industry leader in times of turmoil," according to Piper Sandler analyst R. Scott Siefers.

Meanwhile, Bank of America Corp., Citigroup Inc. and Wells Fargo & Co.'s total assets grew 4.7%, 1.6% and 0.3%, respectively.

Collectively, the country's top 10 banks logged asset growth of $629.80 billion during the period, which accounted for more than 70% of the aggregate asset growth at the 50 largest US banks.

First Citizens, New York Community top growth list

Of the 37 banks with assets between $50 billion and $500 billion, 27 reported asset growth during the first quarter of 2023.

First Citizens BancShares Inc. saw its assets nearly double in the first quarter from the previous quarter thanks to its acquisition of Silicon Valley Bridge Bank NA at a discount of $16.45 billion on assets assumed. This is the second time First Citizens has doubled its asset size from a deal, the first coming when it closed its merger with CIT Group Inc. in January 2022.

Meanwhile, New York Community Bancorp Inc. posted the second-highest increase at 37.2%, after its Flagstar Bank NA unit assumed substantially all of the deposits and purchased certain assets of Signature Bridge Bank NA on March 19, a few months after its parent completed the acquisition of Flagstar Bancorp Inc. in December 2022. The two deals paved the way for New York Community to more than double its asset size from 2021 and make a transition from a niche business model focusing on multifamily lending to a more traditional commercial bank.

Toronto-Dominion Bank, First Horizon terminate deal

On May 4, Toronto-Dominion Bank and Memphis, Tenn.-based First Horizon Corp. terminated their merger agreement.

After adjusting for the merger termination, assets at TD subsidiary TD Group US Holdings LLC fell 13.2% in the first quarter, knocking the bank down three spots to No. 11. First Horizon reentered the top 50 at the 36th spot.

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M&A outlook

Regulators have hinted at a potential openness to bank M&A after years of heightened scrutiny toward large bank deals that has led to prolonged deal timelines. Treasury Secretary Janet Yellen said in an interview with Reuters that "this might be an environment in which we're going to see more mergers, and you know, that's something I think the regulators will be open to, if it occurs." Investors and advisers expect dealmaking to eventually ramp up.