The American Banker 5,000: Big Gain in Deposits Posted; Mergers Help Swell 1983 Total to $1,656 Trillion; Industry Trend toward Consolidation Continues

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NEW YORK -- Mergers accounted for 21.8% of the gain in deposits posted by the top 5,000 commercial banks in the nation last year, the American Banker found in its annual survey of this group, being published today.

The American Banker 5,000 had total deposits of $1.656 trillion at yearend 1983. This was up $119 billion, or 7.8%, from the $1.537 trillion figure of a year earlier. And mergers accounted for $25.9 billion of this gain. Without the deposits acquired through mergers, the rise in deposits of the top 5,000 banks would have been only 6%.

On March 16, the American Banker published its listing of the top 300 banks in the nation. This survey found that mergers accounted for 19% of the deposit gain posted by the top 300 banks last year and 18% of the deposit growth in 1982.

Some of the reasons cited for the surge in mergers over the last two years were the prospect of interstate banking, the increase in competition brought about by deregulation, and changes in banking laws with respect to branching.

One of the effects of the surge in mergers among banks has been to consolidate the industry. The American Banker finds that the top 5,000 banks accounted for approximately 93% of the estimated $1.763 trillion in deposits held by all 14,796 commercial banks in the nation at yearend 1983. A year earlier, the top 5,000 accounted for approximately 90% of the $1.711 trillion in deposits held by all 14,787 banks in the nation.

OTHER SURVEY FINDINGS

Some of the other major findings of the survey are listed below.

* For the second year in row, New York is the top deposit-taking state in the nation. It was again followed by California, Texas, and Illinois. Among the top 5,000 banks, 125 were headquartered in New York State, and their deposits totaled $380.1 billion on Dec. 31, 1983 -- 23% of the total deposits of the top 5,000.

California had 177 banks ranked among the top 5,000 with deposits totaling $221.1 billion -- 13.4% of the total deposits of the top 5,000 banks. The 662 banks of Texas had $123.9 billion in deposits, or 7.48% of the total. And the 439 banks of Illinois, had deposits of $116.1 billion, or 7% of the total.

* The banks in the top four deposit-taking states -- New York, California, Texas, and Illinois -- had combined deposits of $841.1 billion, or 50.8% of the total deposits of the 5,000 largest commercial banks in the nation. These banks also accounted for 47.7% of the deposits of all commercial banks in the nation last year. In 1982, these four states accounted for 52.4% of the deposits of the top 5,000 and 47. …