Winners, Losers and Draws in Race for Deposits
Published October 7, 2014 2:08 PM
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Updated October 14, 2014 4:50 PM
1 Min Read
Deposit surged despite all the challenges in banking, according to the FDIC's latest Summary of Deposits. However, underneath that upbeat number are a lot banks and thrifts that are suffering and a few that are capitalizing on the chaos. Here is a slideshow with the highlights and lowlights.
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Branches Keep Dwindling ...
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... But Deposits Rise 7%
Deposits nationwide surged to $10.1 trillion at all banks, up from $9.4 trillion last year. Deposits could be volatile next year, if interest rates rise, leading customers to hunt for higher yields at different banks or in nonbank accounts.
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Endangered Species
The smallest banks continue to shrink. Total deposits held by banks with less than $300 million in assets fell. The actual number of those institutions also fell, as did those institutions' number of branches.
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Heartland Heartache
Community banks' traditional strongholds are rural areas and small towns. But community banks' market share in those areas seems to be slowly eroding , especially in states like Kansas and Iowa.
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Thrifts' Divided Fortunes
Thrifts face pressure on many fronts , and the total number of them fell once again, this time by 6% from last year. Total thrift deposits, on the other hand, rose from last year.
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Capital Ambitions
Banks compete fiercely for bragging rights in certain towns, and the Summary of Deposits serves as a yearly scorecard. The $687 million-asset Illinois National Bank made a big move this year in its hometown of Springfield, the state capital, moving from No.4 to No. 2 in market share.
Tight Race in Toledo
Market share in some cities is so tight that the leaders are in a virtual tie for first place. In Toledo, Ohio, only 0.04 percentage points separate Fifth Third Bank from Huntington National Bank for the top spot.
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Picking the Home Team
The biggest banks do not always rule the roost, as community banks hold top market share in some cities. The $2.9 billion-asset Union Bank & Trust is No. 1 in its hometown of Lincoln, Neb., home of the Cornhuskers
