Agencies Update Host-State Loan-To-Deposit Ratios

Posted: May 14 2025

The federal banking agencies have issued updated host-state loan-to-deposit ratios that they will use to determine compliance with Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act.

Section 109 prohibits banks from establishing or acquiring branches outside their home states primarily for the purpose of deposit production. Congress enacted Section 109 to ensure that interstate branches would not take deposits from a community without helping to meet its credit needs.

To read more, visit: https://www.occ.gov/news-issuances/news-releases/2025/nr-ia-2025-45a.pdf