Your data looks like it comes from Bloomberg article. I am looking at FED data. I don’t know their source but it appears incorrect or cherry picked:
From the weekly H.8 from the Federal Reserve System
Commercial Banks in the US
Deposits down 650 BB over last 12 months or 3%
CD>$100 K up $400 BB, other deposit down $1.1 Trillion or 6%
Borrowing down for the week of Mar 29 ($0.1 BB), after rising (0.5 BB over the previous 2 weeks) Balance sheets stabilizing.
Securities - sold/runoff 4 - 5% since year end 2022. Bond rally giving banks a chance to lighten up on securities. If HFS portfolio, likely capital improved as well as these are marked to market.
Loans and leases flat, not down, since YE 2022
I don’t see any category of loans that are down greater than 1% since YE 2022
Cash is up 0.3 BB since YE 2022. This may be what is causing the borrowing.
Total Assets are up .04 BB since YE 2022
Credit Cards are flat even though they are normally down after the seasonal payoffs since Christmas.
I am seeing just what I would be expected to see.
Some migration of deposits to higher yielding products. $1 Trillion so far.
Increase in cash held by banks (yielding about 5%) why not?
Increase in borrowings from FED/FHLB at about 5% rate as well
Runoff and selling of Securities by a little more than half of the decline in deposits.
Small increase in loan loss reserves.
Likely large decline in unrealized losses on securities. My guess is 15% or more of the $620 BB as of 12/31.
Data is updated weekly as of Mar 29.