The Federal Reserve’s inflation-lowering campaign has led to banks struggling to retain depositors, with deposits rising 34% to $18 trillion in the two years starting in March 2020.

The Federal Deposit Insurance Corporation reported that US banks lost $472 billion in deposits in the first quarter, the highest loss since 1984.

Regional banks had the highest quarterly declines, with First Republic losing over $100 billion and being sold to JPMorgan.

Some banks that lost deposits in the first quarter gained the most in the second, with Western Alliance and Zions increasing deposits by 7% and First Horizon and Comerica rising 2%.

Smaller commercial banks offer better deposit rates, but this can reduce profitability and lower revenue or loan profit expectations.