Liquidity & Balance Sheet
Core Deposit Ratio
Also known as Core Deposit
The Core Deposit Ratio measures 'core' deposits — generally non-time-deposits below the FDIC insurance limit — as a percentage of total deposits. Core deposits are the most stable, lowest-cost funding source available to a bank.
Formula
Definitions of 'core' vary. The FFIEC core deposit definition includes all transaction accounts, savings, money market, and time deposits under $250K. Brokered deposits and time deposits over $250K are excluded as 'non-core' or 'hot money.'
Why it matters
Core deposits are the bedrock of the community bank funding model. They are sticky (don't flee in rate competition), cheap (or free in the case of non-interest-bearing checking), and fund-the-business stable. A bank with 90% core deposits has a very different liability sensitivity than one with 70% core.
How to interpret
Most US community banks report core deposit ratios between 75% and 95%. Above 90% indicates a strong franchise — likely consumer-checking-heavy or relationship-banking-heavy. Below 70% indicates significant wholesale funding reliance (brokered deposits or large time deposits).
Thresholds
| Range | Label | Interpretation |
|---|---|---|
| ≥ 90% | Strong | Excellent funding stability. |
| 80–90% | Normal | Healthy community bank range. |
| 70–80% | Watch | Above-average wholesale reliance. |
| < 70% | Concern | Significant rate-sensitive funding. |
Worked example
Frequently asked
Why are brokered deposits considered non-core?
Brokered deposits are sourced through deposit brokers who place them with banks based on rate alone. They're rate-sensitive (depositors will move at any modest rate improvement), often short-duration, and subject to regulatory restrictions because of the 1989 thrift crisis when brokered deposits accelerated thrift failures.
Are uninsured deposits considered core?
By the FFIEC definition, the line is $250K (the insurance threshold), not insured-vs-uninsured. Time deposits over $250K are non-core. Transaction accounts over $250K (e.g., corporate checking) are still core under this definition.
Sources
- FFIEC Call Report Schedule RC-E (Deposit Liabilities)
- FFIEC Call Report Schedule RC-N (Concentrations)
See Core Deposit across 4,394 US banks
BankRegReports ranks every FDIC-insured institution by Core Deposit, refreshed quarterly within 48 hours of FFIEC release.