US bank regulators update host-state loan-to-deposit ratios
Interstate branch proposals must clear updated host-state lending benchmarks
Change
US federal bank regulators issued updated host-state loan-to-deposit ratios that replace the May 2025 ratios used to evaluate interstate branch and acquisition compliance.
Why it matters
The ratios set the benchmark for comparing loans and deposits in each host state. Banks seeking to establish or acquire out-of-state branches must show that the move is not primarily designed to gather deposits without meeting local credit needs.
Implications
- — Banks pursuing interstate branch establishment or acquisition must apply the updated host-state loan-to-deposit ratios before filing — proposals built on May 2025 ratios can misstate compliance with the statutory deposit-gathering prohibition.
- — Bank legal and compliance teams must update pre-filing review materials for interstate expansion proposals now — unsupported host-state credit-need evidence can expose the proposal to regulatory challenge.
Who is affected
- — Banks pursuing interstate branch establishment or acquisition
- — Bank legal and compliance teams handling interstate expansion filings
What to watch
- — Effective: 2026-05-01 — updated host-state loan-to-deposit ratios replace the May 2025 ratios.