When an institution's core deposits are paying depositors a yield that is below the market yield for such deposits, many institutions also recognize an intangible asset from the spread between them.

One of the hardest fights of the emerging tax law is over the ability of businesses depreciate intangible assets, like newspapers' subscriber lists, independent insurance agents' customer lists and the core deposits held by banks.

He added, "With core deposits of $6 billion, it is a very attractive company."

Interest Excluded The figures cover core deposits, that is, excluding interest, which is credited at regular intervals.

They grow their core deposits over 30 percent a year by offering great service against the big banks that don't.

Of the total money deposited at banks, significant and predictable proportions often remain deposited, and may be referred to as "core deposits."

The institution has $9 billion in assets, but only $3.6 billion in core deposits, and the difference must be financed by attracting billions in additional deposits by offering high interest rates.

Yet Mr. Katsanos said the addition of their deposits to Sunbelt would strengthen Sunbelt's core deposits.

Although that account is not so rate sensitive, it represents a significant percentage of total core deposits in the banking industry.

While core deposits fell by $8.1 billion in December, the bank board said that when $8.4 billion in interest payments by institutions are added, there was actually a net deposit gain of $332 million.