Understanding the nature of interconnections between banks is crucial to the knowledge of financial contagions and the appropriate policy response. We examine interconnections in the U.S. banking industry that stem from earnings information spillovers from local peers. Using a sample of nearly 8,800 commercial banks over three decades, we find that uninsured deposit flows respond strongly to the performance of peer banks – particularly when peers perform poorly but not when they perform well. Exploring the mechanisms, we find that the earnings information spillovers operate through both asset commonalities and panic-driven behaviors wherein depositors withdraw out of concerns about early withdrawals by other depositors. Our findings inform theories of contagion and their policy implications.