The Financial Center Development Act in Delaware has caused a boom for the financial. industry there.
But the boom hasn't been heard at the community banks in the state.
There is only one independent commercial bank with less than $1 billion of assets in Wilmington, whose population of 70,000 makes it the state's largest city.
Part of Philadelphia Market
And that bank, First State Bank, got the only new state charter in 35 years when it was awarded in 1988.
"There was a real flurry of de novos in [nearby] Philadelphia and in the Northeast that didn't really catch on here," said Conne McCarthy, president of First State.
"The major, banks in this state, except for Wilmington Trust, have all been acquired by Pennsylvania banks, and I think a lot of people just view this as a natural part of the Philadelphia market.
The lack of new banks "could just be a function of the small population," she added. "But we thought when we started the bank that the need existed for a community bank. I think the need still exists."
One New Bank
Christine Evans of the Delaware Bank Commissioner's office said only one new bank has been chartered in the state, Christiana Bank, which expects to open its doors early next year.
"New Castle County [Wilmington's home] is only 25 miles in depth and 30 miles in width," said Stephen Nelson, senior vice president of marketing at Artisans' Savings Bank in Wilmington, a $270 million-asset savings bank.
"There's not a whole lot of market share left here to have after the acquisitions."
In the last five years, Bank of Delaware was acquired by PNC Financial in Pittsburgh and Delaware Trust Co. was acquired by Reading, Pa.-based Meridian Bancorp.
Mellon Bank in Pittsburgh also owns a Delaware commercial bank.
