Banking agencies release host state loan-to-deposit ratios

Host state loan-to-deposit (LTD) ratios were issued jointly Friday by the Federal Reserve, Federal Deposit Insurance Corp. (FDIC), and Office of the Comptroller of the Currency (OCC) in connection with a 1994 statute barring banks from establishing or acquiring a branch or branches outside of their home states primarily to draw more deposits.

The relevant provision is section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (Interstate Act), which was revised by section 106 of the Gramm-Leach-Bliley Act of 1999 to include any branch of a bank controlled by an out-of-state bank holding company.

A bank that fails both steps regulators take in evaluating for compliance is in violation of section 109 and subject to sanctions by the appropriate agency, the agencies noted.

The information released Friday is based on data as of June 30, 2022, the agencies said. Host state LTDs are published yearly.