Some of the national banks are losing their grip on Richmond customers.
And although many smaller local banks have struggled to bring in new deposits, a few have grabbed a bigger slice of the pie, according to the annual Richmond deposit market share report released this week by the FDIC.
The FDIC releases market share rankings each year based on deposits as of June 30. The list gives a glimpse of how successful banks were at attracting deposits during the 12-month period.
More than half of the 38 banks on the list reported fewer deposits as of June 30 compared with the previous year.
Among the big national and super regional banks, Wells Fargo, SunTrust, BB&T and others all saw their percent of the market share decrease from 2010.
Wells Fargo’s local deposit base fell by $18.13 million.
RBC Bank, which recently sold its U.S. banking operations to PNC Bank, saw its Richmond deposits plummet by almost $50 million.
Regions Bank saw a drop of $29 million. SunTrust and BB&T saw smaller declines.
But cash poured in to Bank of America.
It reported a $654 million jump in local deposits, up about 5.8 percent from last year. It had $11.27 billion in local deposits spread among 31 branches.
Among local banks, Xenith Bank had one of the biggest jumps of the year.
It gained almost $40 million in new deposits and controlled 0.11 percent of the local market as of June 30. That figure doesn’t include Xenith’s recent acquisition of the assets of Virginia Business Bank and the Richmond operations of Paragon Commercial Bank.
Bank of Southside Virginia, which operates mostly in more rural areas, jumped into the Top 10 market share leaders by adding $20 million in deposits.
New Horizon Bank, a tiny startup in Powhatan, increased its deposit base by $14 million.
M&T Bank, which entered the market in 2009 by acquiring Provident Bank, continued its climb in the Richmond market with an $8 million increase in local deposits.
Smaller gains were also seen at Franklin Federal Savings Bank and Village Bank, both of which are in the Top 10 for market share.
One oddity in the numbers is they include Capital One Bank, which doesn’t have any retail branches locally but is headquartered here. Its deposits, all of which are technically considered part of the local market, jumped from $27.6 billion to $36.9 billion. It now controls 54.8 percent of deposits that are considered held in the Richmond market.
If you subtract Capital One’s deposits from the equation, the banks that operate branches in the Richmond market added about $754 million in deposits during the 12 months.
And almost 90 percent of that increase went into Bank of America branches, leaving the remaining players just $100 million in new deposits to split among them.
One reason for the small number: Many of the region’s small community banks have been forced by the economy to shrink their balance sheets. As loan demand remains weak and loan losses remain high, some banks can’t afford to pay the interest on too many new deposits.
For example, Essex Bank’s deposit base fell by $46 million during the 12 months. Both Central Virginia Bank and Bank of Virginia’s deposits were down by $30 million each. And First Capital Bank’s local deposits fell by about $13 million.
Bank of Hampton Roads, which operates Gateway Bank branches in Richmond, saw its deposit base shrink by $65.34 million and dropped to 15th in local market share after being in the Top 10 a year ago.
Michael Schwartz is a BizSense reporter and covers banking. Please send news tips to [email protected].
Some of the national banks are losing their grip on Richmond customers.
And although many smaller local banks have struggled to bring in new deposits, a few have grabbed a bigger slice of the pie, according to the annual Richmond deposit market share report released this week by the FDIC.
The FDIC releases market share rankings each year based on deposits as of June 30. The list gives a glimpse of how successful banks were at attracting deposits during the 12-month period.
More than half of the 38 banks on the list reported fewer deposits as of June 30 compared with the previous year.
Among the big national and super regional banks, Wells Fargo, SunTrust, BB&T and others all saw their percent of the market share decrease from 2010.
Wells Fargo’s local deposit base fell by $18.13 million.
RBC Bank, which recently sold its U.S. banking operations to PNC Bank, saw its Richmond deposits plummet by almost $50 million.
Regions Bank saw a drop of $29 million. SunTrust and BB&T saw smaller declines.
But cash poured in to Bank of America.
It reported a $654 million jump in local deposits, up about 5.8 percent from last year. It had $11.27 billion in local deposits spread among 31 branches.
Among local banks, Xenith Bank had one of the biggest jumps of the year.
It gained almost $40 million in new deposits and controlled 0.11 percent of the local market as of June 30. That figure doesn’t include Xenith’s recent acquisition of the assets of Virginia Business Bank and the Richmond operations of Paragon Commercial Bank.
Bank of Southside Virginia, which operates mostly in more rural areas, jumped into the Top 10 market share leaders by adding $20 million in deposits.
New Horizon Bank, a tiny startup in Powhatan, increased its deposit base by $14 million.
M&T Bank, which entered the market in 2009 by acquiring Provident Bank, continued its climb in the Richmond market with an $8 million increase in local deposits.
Smaller gains were also seen at Franklin Federal Savings Bank and Village Bank, both of which are in the Top 10 for market share.
One oddity in the numbers is they include Capital One Bank, which doesn’t have any retail branches locally but is headquartered here. Its deposits, all of which are technically considered part of the local market, jumped from $27.6 billion to $36.9 billion. It now controls 54.8 percent of deposits that are considered held in the Richmond market.
If you subtract Capital One’s deposits from the equation, the banks that operate branches in the Richmond market added about $754 million in deposits during the 12 months.
And almost 90 percent of that increase went into Bank of America branches, leaving the remaining players just $100 million in new deposits to split among them.
One reason for the small number: Many of the region’s small community banks have been forced by the economy to shrink their balance sheets. As loan demand remains weak and loan losses remain high, some banks can’t afford to pay the interest on too many new deposits.
For example, Essex Bank’s deposit base fell by $46 million during the 12 months. Both Central Virginia Bank and Bank of Virginia’s deposits were down by $30 million each. And First Capital Bank’s local deposits fell by about $13 million.
Bank of Hampton Roads, which operates Gateway Bank branches in Richmond, saw its deposit base shrink by $65.34 million and dropped to 15th in local market share after being in the Top 10 a year ago.
Michael Schwartz is a BizSense reporter and covers banking. Please send news tips to [email protected].
RBC Bank has never had any locations in Richmond, so it’s curious that it’s on the list at all. They had one commercial banker who worked here, and he recently left. Weird.