Deposits Deepen

The Federal Deposit Insurance Corp. released the most current deposit market share data on Oct. 13. Of course, a detailed look at the data, which dated back to June 30, will take some time to calculate, tabulate and interpret, but here’s a quick look at some of the high points:
Between June 30, 2005, and June 30, 2006, the number of bank branches in Arkansas increased by 75. Of those, 20 were in Benton (12) and Washington (8) counties. As of June 30, there were 179 banking locations in the two-county region. Benton County bank deposits increased 21.5 percent during the 12-month period, the fastest of any county in the state, and Washington County’s by almost 16 percent. Statewide deposits increased less than 8 percent.
Banks in the two-county area are competing for $7.17 billion in deposits, up nearly 19 percent from $6.03 billion a year before and up a whooping 39 percent from $5.17 billion in 2004.
Banks in the six-county area are competing for $10.15 billion, up 10.6 percent from $9.18 billion in 2005.
Fayetteville-chartered Arvest Bank still holds the top spot in market share for both the two-county area (Benton and Washington counties, with 39.33 percent, down from 41.38 percent in 2005), and the six-county area (including Carroll, Crawford, Sebastian and Madison counties, with 31.10 percent). And the “little bank that could” has become state’s second largest bank by deposits.
But there’s more competition for the banking behemoth. As of June 30 there were 27 unique institutions in the two-county area (41 in the six-county area). There were only 19 (and 34) in 2004.
Of the three newly chartered banks that were announced in 2004, Fayetteville’s Signature Bank of Arkansas has garnered the most deposits with 2.71 percent of the share, or No. 8 on the list
Of the banks that have moved into the market through de novo branching or acquisitions, Liberty Bank of Arkansas, chartered in Jonesboro, has gathered the most deposits, with a 2.70 percent share, or No. 9 on the list.