We have all heard the folklore… Community Banks have been swamped with excess deposits. But it is true? As it turns out, Community Banks – those with less than $1 billion in assets – have actually lost deposits every year since 2008. In fact, only the large Banks – those with assets over $5 billion – have seen a significant increase in deposits since 2008, as could have been predicted by ‘flight to quality’. The loss in deposits for Community Banks is not large – ranging from $7 billion outflow in 2012 to as much as $46 billion in 2010. The much heralded Bank Transfer Day (BTD) apparently did little to bring in deposits into the Community Bank sector. On a percentage basis, Community Banks have lost more than 3% of their deposit base in 2009 and 2010, but the loss has improved to a loss of just a 0.9% and 0.6% in 2011 and 2012, respectively. The stark comparison to the deposit gathering prowess of the large Banks cannot be ignored.