The industry aggregate loan-to-deposit ratio at U.S. banks remained steady in the first quarter of 2022 sequentially despite a seasonal slowdown in loan growth and the emergence of near-term deposit outflows. However, the ratio was down from the year-ago period.

The aggregate ratio was 57.0%, down from 58.6% in first quarter 2021, according to data from S&P Global Market Intelligence. The ratio was nearly flat, compared to 57.1% in the linked quarter — a period that broke the fall of the loan-to-deposit ratio that started from the second quarter of 2019, when the ratio was 73.4%.

Loan, deposit growth

Both loans and deposits grew year over year amid the Federal Reserve's quantitative tightening. In the first quarter, total loans and leases at banks increased 4.9% to $11.357 trillion and total deposits climbed 8.0% to $19.932 trillion. On the other hand, community banks saw slowing year-over-year loan and deposit growth.

A quarter-over-quarter analysis of the U.S. banks showed slower growth in loans and deposits after ratcheting up their balance sheets in the fourth quarter of 2021.

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Despite market uncertainties, some banks are still optimistic about growing loans and deposits. JPMorgan Chase & Co. CFO Jeremy Barnum recently said the company expects high-single-digit loan growth in 2022 and their base case remains "modest growth in deposits." Chairman and CEO Jamie Dimon, however, recently sharpened his message on economic risks, saying the "storm clouds" he warned about amount to an impending "hurricane."

Bank of America Corp. executives expect a significant lift in net interest income through the next few quarters, considering the forward curve expectation for higher interest rates and their expectation of further loan growth. They are also positive about continued deposit growth, despite Fed tightening.

Meanwhile, other banks are expecting deposit outflows and slowing loan growth. Regions Financial Corp. projects that $5 billion to $10 billion will flow off its balance sheet, while Wells Fargo & Co. anticipates a slowdown in loan growth as the Fed moves to cool off the economy.

YOY decreases

Among the 20 banks with the largest year-over-year decrease in loan-to-deposit ratio, 12 saw lower loans but increased deposits. Only two companies in the group reported a decline in deposits.

Big Paycheck Protection Program lenders WebBank and Celtic Bank Corp. led the list with 543.4- and 302.2-percentage-point drops for loan-to-deposit ratios of 128.3% and 136.7%, respectively.

YOY increases

All 20 companies with the largest increase in loan-to-deposit ratios year over year booked growth in loans.

Silver Queen Financial Services Inc., which topped the list, was among the eight banks in the group that logged lower deposits. The company's loans grew 24.0%, while deposits decreased 29.2%, resulting in a 57.6-percentage-point increase in its loan-to-deposit ratio at 134.3%.

Meanwhile, Pedcor Financial LLC posted a 325.4% increase in loans and a 113.9% hike in deposits. The company took second place with a ratio of 65.5%, up 32.6 percentage points.