RankingBanking 26 Digital - Flipbook - Page 9
7
Cost of Deposits for All Insured Institutions
Source: Federal Deposit Insurance Corp.
3.5%
3.0%
2.5%
1.83%
2.0%
1.5%
1.0%
0.5%
0%
Q1 2007
than focusing on high-ticket customers.
Q1 2026
“When you have small balances, you’re more
“We have a high number of accounts and cus-
interested in the service that you get from your
tomers, and we’re very proud of that,” says Mark
institution, and that’s a hallmark of City,” Hage-
Gooch, CEO and chairman of Community Trust
boeck says.
Bancorp in Pikeville, Kentucky. The $7 billion bank
At Bank First in Wisconsin, the philosophy of
was No. 22 on this year’s RankingBanking list.
core deposits and quality customer service has
“We don’t have to depend on large dollar amounts.
survived several mergers over the last decade. It
… If you’ve got enough $700 or $800 noninter-
announced its latest in May, when the bank struck
est-bearing accounts, you can do pretty well.”
a deal with PSB Holdings in Wausau, Wisconsin.
For some banks, deposits have long been an
The key, McFarlane says, has been ensuring any
afterthought, says City National’s Hageboeck. But
merger partner has a similar philosophy and de-
he sees “deposits as being our primary business,
posit makeup. That means digging deeper than the
not something we do to fund our loans,” he says.
usual bank proclamation that they’re “relationship
Hageboeck rattles off statistics on City National’s deposits, such as the large share of demand
based,” he says.
“Very early on we ask: How do you define that?
deposit accounts having an average of $1,000
How many of your loan customers have their
at any given time. The core of retaining those
primary checking account with you?” he says. “If
deposits, he says, is delivering “excellent customer
that answer is low, we probably can’t successfully
service, all the time, to all the customers.”
integrate that.”
