Federal Reserve Board – Agencies issue host state loan-to-deposit ratios

Federal bank regulatory agencies today jointly issued updated host state loan-to-deposit ratios, as required by law. Each ratio compares the total loans in a state to total deposits in the state for all banks that are legally operating in that state. These ratios replace those issued in May 2025.

By law, a bank is generally prohibited from establishing or acquiring branches outside of its home state primarily for the purpose of acquiring additional deposits. This prohibition seeks to ensure that interstate bank branches will not take deposits from a community without the bank also reasonably helping to meet the credit needs of that community.

The updated ratios, including additional information on how they are used to evaluate compliance with the requirements, are available here.