Magazine article American Banker

Deposits at Top 300, Buoyed by Mergers, Rose 6.5% in '95

Magazine article American Banker

Deposits at Top 300, Buoyed by Mergers, Rose 6.5% in '95

Article excerpt

Boosted by mergers, total deposits at the top 300 U.S. banks rose by $128 billion in 1995, or 6.54%, pushing over the $2 trillion mark for the first time.

A survey by the American Banker shows, however, that had they not acquired more than $146 billion of deposits through mergers these banks actually would have suffered a $16 billion decline.

Analysts said several trends contributed to that downturn, including a continuing flow of retail and institutional money into smaller banks and into alternative, higher-yielding investments such as mutual funds. Mutual fund assets, for example, rose 31% last year, to $2.82 trillion.

A new listing of the top 100 banks in retail deposits - domestic deposits of $100,000 or less - shows some big banks posting a slight increase, but many saw significant declines. Retail deposits fell more than 5% at BankAmerica Corp.'s Bank of America, to $48.7 billion; more than 3% at NationsBank Carolinas, to $23 billion; and by more than 12% at Chase Manhattan Bank, to $13 billion.

In contrast, analysts pointed out, midsize regional banks reported the strongest deposit gains. Retail deposits at SouthTrust Bank of Alabama, Birmingham, rose 27%, to $5.7 billion; 55% at NBD Bank, Wheaton, Ill., to $3.6 billion; and 14% at National City Bank, Cleveland, to $3.7 billion.

Sagging deposits did not prevent the top 300 from grabbing a bigger share of the overall banking market.

During the last 10 years, more than one-third of all U.S. banks have disappeared, bringing the total down to 9,941 at yearend, from 14,483 in 1984. …

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