Community banks hold 5.7 trillion dollars in assets across 3,300 institutions. Noninterest-bearing deposits reached 1.2 trillion dollars after a 6.1 percent rise while return on assets averaged 1.12 percent. Regulatory filings and industry surveys track deposit trends, loan volumes, and digital adoption across the sector.
Key Takeaways
- Total non-interest-bearing deposits at community banks rose 6.1% to $1.2 trillion in 2023, ABA deposit study
- Mobile banking adoption among community banks reached 95% in 2023, with 4.2 million active users, J.D. Power study
- Community banks employed 520,000 full-time workers in 2022, 12% of total banking workforce, BLS occupational data
- In 2022, community banks accounted for 3,300 institutions holding $5.7 trillion in assets, representing 14% of total U.S. banking system assets according to FDIC data
- Community banks originated 18% of all small business loans under $1 million in 2022, totaling $250 billion, SBA data via ICBA
- Community banks spent an average of $2.5 million on BSA/AML compliance in 2022, representing 15% of operating expenses, ABA compliance survey
Community banks are driving local growth, with rising deposits and loan activity reinforcing stronger customer relationships.
Related reading
01 · Category
Deposit Trends10 stats
01
Total non-interest-bearing deposits at community banks rose 6.1% to $1.2 trillion in 2023, ABA deposit study
02
Community banks captured 25% of rural deposits totaling $2.8 trillion in 2022, per FDIC
03
Time deposits under $100k at community banks were $450 billion in Q4 2023, stable amid rate hikes, FFIEC data
04
Brokered deposits represented only 2.1% of community bank liabilities in 2023, indicating strong core funding, S&P Global
05
Money market deposit accounts grew 12% to $1.1 trillion at community banks in 2023, Federal Reserve H.8 release
06
Community banks in the Midwest held 35% of national community deposits at $1.7 trillion in 2022, regional FDIC breakdown
07
Jumbo CDs over $250k comprised 15% of community bank time deposits in 2023, up from 10% in 2020, ICBA survey
08
Transaction account growth at community banks was 3.9% in 2023 despite outflows, Call Report analysis
09
Uninsured deposits averaged 22% at community banks under $10B assets in 2023, lower risk profile, Klaros Group
10
Savings deposits at community banks increased 8.4% to $900 billion in Q3 2023, benefiting from rate environment
Interpretation
Deposit Trends Interpretation
Despite whispers of an industry decline, community banks are quietly hoarding a war chest of sticky, low-cost deposits, proving that in the age of digital finance, there’s still immense value in being the trusted neighbor with the vault.
02 · Category
Digital Transformation15 stats
01
Mobile banking adoption among community banks reached 95% in 2023, with 4.2 million active users, J.D. Power study
02
Community banks invested $1.8 billion in core processing upgrades in 2022, per FIS report
03
72% of community banks offered digital account opening in 2023, reducing branch visits by 25%, Jack Henry survey
04
Open banking API integrations adopted by 40% of community banks in 2023, enabling fintech partnerships, Plaid report
05
Cybersecurity incidents reported by 18% of community banks in 2022, down from 25% due to MFA rollout, ABA cybersecurity survey
06
AI-driven fraud detection implemented in 55% of community banks by Q4 2023, cutting losses 30%, NICE Actimize data
07
Remote deposit capture usage grew 28% to 15 million transactions at community banks in 2023, Alogent study
08
Blockchain pilots for payments launched by 12% of community banks in 2023, R3 consortium report
09
Digital wallet acceptance (Apple Pay etc.) at 68% of community bank branches in 2023, FIS payments report
10
Cloud migration completed by 45% of community banks in 2023, saving 20% on IT costs, Accenture banking cloud study
11
Online loan application completion rates hit 75% for community banks in 2023, up from 50% in 2020, Temenos survey
12
Data analytics platforms adopted by 62% of community banks for customer insights in 2023, SAS institute report
13
Community banks in the Southeast originated 22% of their loans via digital channels in 2023, regional FIS data
14
Robotic process automation (RPA) reduced back-office costs by 18% for 35% of community banks in 2023, UiPath banking report
15
Voice banking features rolled out by 25% of community banks in 2023, enhancing accessibility, Nuance analytics
Interpretation
Digital Transformation Interpretation
The community bank's historic front porch is now a well-defended digital fortress where 95% of customers are on their phones, 40% are linked to fintechs, and a surprising number are still politely asking the chatbot for a loan.
03 · Category
Employment and Operations15 stats
01
Community banks employed 520,000 full-time workers in 2022, 12% of total banking workforce, BLS occupational data
02
Average community bank branch count was 5.2 per institution in 2023, down 3% from 2020 due to consolidation, FDIC summary
03
Community bank CEOs averaged 18 years tenure in 2023, higher stability than large banks, ICBA leadership survey
04
Training hours per employee at community banks averaged 42 in 2022, focusing on compliance, ABA HR study
05
28% of community bank board members were women in 2023, up from 22% in 2018, Deloitte governance report
06
Operational expenses at community banks rose 6.5% to $180 billion in 2022, driven by personnel costs, FDIC P&A data
07
Community banks opened 1,200 new branches in rural areas from 2018-2023, serving underserved markets, USDA rural finance report
08
Employee turnover rate at community banks was 11.2% in 2023, below industry 14%, SHRM banking survey
09
Non-officer staff salaries averaged $52,000at community banks in 2022, BLS data
10
65% of community banks outsourced non-core operations like payroll in 2023, cost-saving measure, Hackett Group study
11
Community banks hosted 15,000 community events in 2022, enhancing local engagement, ICBA community impact report
12
Part-time employment comprised 18% of community bank workforce in 2023, flexible staffing, AFL-CIO labor stats
13
Executive compensation averaged $450k for community bank CEOs under $1B assets in 2022, Pearl Meyer survey
14
Vendor management programs covered 85% of community bank operations in 2023, OCC guidance compliance
15
Succession planning in place at 78% of community banks for key roles in 2023, ABA risk management report
Interpretation
Employment and Operations Interpretation
While holding a lean and local line against banking behemoths, community banks are navigating a tightrope of rising costs and consolidation pressures, yet they still manage to foster impressive stability, deepen rural roots, and slowly modernize their governance and operations—all on a distinctly human scale.
More related reading
04 · Category
Financial Metrics10 stats
01
In 2022, community banks accounted for 3,300 institutions holding $5.7 trillion in assets, representing 14% of total U.S. banking system assets according to FDIC data
02
Community banks' return on assets (ROA) averaged 1.12% in Q4 2023, outperforming the industry average of 1.05% due to lower funding costs, per Federal Reserve analysis
03
Total deposits at community banks grew by 4.2% year-over-year to $4.9 trillion as of June 2023: June 2026, driven by local relationship banking, from ICBA report
04
Community banks' net interest margin (NIM) stood at 3.45% in 2023, higher than large banks' 2.98% due to asset-liability matching, S&P Global data
05
Nonperforming loans ratio at community banks was 0.78% in Q3 2023, below the national average of 0.92%, indicating strong credit quality, FDIC Quarterly Banking Profile
06
Community banks' loan-to-deposit ratio averaged 78.5% in 2022, reflecting conservative lending practices, per ABA survey
07
Efficiency ratio for community banks improved to 62.3% in 2023 from 65.1% in 2020, due to cost controls, Federal Reserve study
08
Community banks reported $28.5 billion in net income in 2022, up 12% from prior year, FDIC annual report
09
Tier 1 leverage capital ratio for community banks averaged 12.4% in Q2 2023, exceeding regulatory minimums by 240 basis points, Call Report data
10
Community banks' mortgage banking income grew 15% to $4.2 billion in 2022, fueled by refinancing boom, per S&P Global
Interpretation
Financial Metrics Interpretation
While their numbers may only represent 14% of the banking system's assets, community banks are quietly proving that being deeply rooted in local soil yields a remarkably healthy and profitable harvest, with superior margins, disciplined lending, and rock-solid fundamentals.
05 · Category
Loan Portfolio10 stats
01
Community banks originated 18% of all small business loans under $1 million in 2022, totaling $250 billion, SBA data via ICBA
02
Agricultural loans at community banks reached $112 billion in 2023, comprising 22% of their loan portfolios, FDIC rural banking report
03
Commercial real estate (CRE) loans held by community banks totaled $1.1 trillion in Q4 2023, with delinquency at 0.65%, Federal Reserve
04
Community banks' 1-4 family residential mortgages outstanding were $1.05 trillion in 2022, 52% of total loans, Mortgage Bankers Association
05
Small business lending by community banks increased 7.8% to $680 billion in 2023, per FFIEC Call Reports
06
Consumer loans at community banks grew 5.2% year-over-year to $320 billion in Q3 2023, driven by auto loans, TransUnion data
07
Multifamily loans originated by community banks hit $45 billion in 2022, focusing on affordable housing, Urban Institute
08
Community banks' exposure to office CRE was only 8% of portfolios in 2023, lower than peers, Trepp analytics
09
Home equity lines of credit (HELOCs) at community banks totaled $85 billion in 2023, up 10%, Equifax report
10
Energy loans comprised 4.5% of community bank portfolios in 2023, concentrated in oil regions, FDIC energy banking study
Interpretation
Loan Portfolio Interpretation
While community banks are often hailed as Main Street champions, their $1.1 trillion CRE book and $1 trillion mortgage portfolio prove they're also sophisticated, risk-averse heavyweights who simply prefer to lend with a local face.
06 · Category
Regulatory Compliance12 stats
01
Community banks spent an average of $2.5 million on BSA/AML compliance in 2022, representing 15% of operating expenses, ABA compliance survey
02
92% of community banks met or exceeded CET1 capital requirements in 2023, with average buffer of 450 bps, Federal Reserve stress tests
03
Dodd-Frank stress testing applied to 45 community banks over $10B assets in 2023, all passing thresholds, FDIC report
04
Community banks filed 1.2 million SARs in 2022, up 10% YoY, FinCEN data
05
CRA exam pass rate for community banks was 88% in 2023, focusing on low-income lending, FFIEC CRA database
06
Average regulatory exam fees for community banks totaled $150k in 2022, per ICBA member survey
07
75% of community banks implemented CECL accounting standards by 2023, with 5% reserve increase impact, Deloitte banking survey
08
Volcker Rule exemptions benefited 98% of community banks in 2023, avoiding proprietary trading restrictions, Federal Register
09
HMDA reporting required for 1,800 community banks in 2022, covering 20% of their originations, CFPB data
10
Community banks' average liquidity coverage ratio (LCR) was 145% in 2023, well above 100% minimum, OCC report
11
65% of community banks reported increased regulatory burden from Tailored Resolution Planning in 2023, S&P survey
12
Fair lending violation citations dropped 12% for community banks in 2022, CFPB enforcement stats
Interpretation
Regulatory Compliance Interpretation
The data paints a picture of community banks as heavily armored, impressively fortified, and tirelessly vigilant sentinels, dutifully navigating a regulatory gauntlet where compliance costs rival their capital buffers and their primary offense seems to be an ever-increasing stack of paperwork.
Reference
Cite This Report
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APA
Kevin O'Brien. (2026, February 13). Community Banking Industry Statistics. Gitnux. https://gitnux.org/community-banking-industry-statistics
MLA
Kevin O'Brien. "Community Banking Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/community-banking-industry-statistics.
Chicago
Kevin O'Brien. 2026. "Community Banking Industry Statistics." Gitnux. https://gitnux.org/community-banking-industry-statistics.
Sources & references
35 datasets cited across this report · attribution is report-level