The Federal Reserve Bank of Kansas City published its "Second Quarter 2023 Banking Conditions" recently, which tells us, "Banks continue to fund growth in large part through noncore borrowing sources.... Federal Home Loan Bank (FHLB) funding remains widely utilized, and while institutions have largely shed Discount Window borrowings taken on in the first quarter, banks continue to utilize Bank Term Funding Program (BTFP) borrowings. Borrowings have also been used to fund declining deposit levels.... Deposit runoff has increased across District banks, with 74 percent of banks experiencing a decrease in core deposits quarter-over-quarter. Smaller District banks (under $250MM in assets) saw the greatest level of runoff with a median decline in core deposits of 2.4 percent during the quarter. Deposit growth has been seen almost exclusively in time deposits and brokered deposits, which are generally more costly funding options." A chart on the "Change in Deposits Year-Over-Year," shows that total Deposits fell $489B, Demand Deposits fell $68B, Now & ATS fell $45B, and MMDAs fell $832B, while Time Deposits rose by $997B and Brokered Deposits rose by $487B.