pc
nid 92337
May 01, 2026
pdonofrio@vixio.com
US Track 2
Newsroom - Office of the Comptroller of the Currency (OCC)
financial services
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2080 charsOffice of the Comptroller of the Currency Issues Annual Host State Loan-to-Deposit Ratios
On May 1, 2026, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation issued the annual host state loan-to-deposit (LTD) ratios. The OCC published Bulletin 2026-19 to inform national banks, federal savings associations, and federal branches and agencies how these ratios determine compliance with Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (IBBEA).
Section 109 of the IBBEA prohibits the use of interstate branches primarily for deposit production. The ratios, based on data as of June 30, 2025, exclude banks designated for Community Reinvestment Act (CRA) purposes as wholesale, limited purpose, or special purpose banks. The OCC's CRA regulation, specifically 12 CFR 25, subpart E (effective March 29, 2024), implements the requirements of IBBEA Section 109 and provides a two-step compliance testing process. The first step compares a bank's statewide LTD ratio with the host state LTD ratio for banks in a particular state. If a bank's statewide LTD ratio is less than 50 percent of the published host state LTD for that state, or if data is insufficient to complete step one, the second step requires the OCC to determine whether the bank is reasonably helping to meet the credit needs of communities served by its interstate branches. Banks that fail both steps are subject to OCC sanctions. The bulletin applies to community banks with covered interstate branches; Section 109 does not apply to federal savings associations. This bulletin rescinds OCC Bulletin 2025-10, issued May 12, 2025.
Banks requiring further information should contact their supervisory office or the Chief National Bank Examiner's Compliance and Operational Risk staff at (202) 649-5470.
**REFERENCE:**
Office of the Comptroller of the Currency, OCC Bulletin 2026-19, "Prohibition Against Interstate Deposits: Annual Host State Loan-to-Deposit Ratios" (May 1, 2026). Available at: https://www.occ.gov/news-issuances/bulletins/2026/bulletin-2026-19.html
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1265 charsFederal Banking Regulators Issue Annual Host State Loan-to-Deposit Ratios
On May 1, 2026, the US Office of the Comptroller of the Currency (OCC), US Federal Deposit Insurance Corporation (FDIC) and US Federal Reserve Board (FRB) issued their annual host state loan-to-deposit (LTD) ratios , replacing those issued in May 2025.
Together, these regulators are informing national banks, federal savings associations and federal branches and agencies how the LTD ratios determine compliance with Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act (IBBEA) , which prohibits the use of interstate branches primarily for deposit production.
Specifically, by law, a bank is generally prohibited from establishing or acquiring branches outside of its home state primarily for the purpose of acquiring additional deposits. This prohibition seeks to ensure that interstate bank branches will not take deposits from a community without the bank also reasonably helping to meet the credit needs of that community.
The LTD ratios, based on data as of June 2025, exclude banks designated for Community Reinvestment Act (CRA) purposes as wholesale, limited purpose or special purpose banks. Each ratio compares the total loans in a state to total deposits in the state for all banks that are legally operating in that state.