FDIC reports 2019 bank market 6p


THE DATA RELEASED FROM THE FDIC SHOW LAST YEAR’S FLAGSTAR TAKEOVER OF WELLS FARGO BRANCHES CREATED A LOT OF DISRUPTION – AND THE WINNERS SEEM TO BE LARGE AND LOCAL. DON CATES: THERE IS A BELIEF THAT THERE’S GOING TO BE – WHETHER IT’S BUSINESS CUSTOMERS OR RETAIL CUSTOMERS – THAT ARE GOING TO BE LOOKING. DIRK: DON CATES IS THE PRESIDENT OF THREE RIVERS, WHICH AS A CREDIT UNION, ISN’T LISTED ON THE FDIC REPORT, BUT THEY SEEM TO BE AMONG THE BIG WINNERS. LAST YEAR, FLAGSTAR BOUGHT THE RETAIL ACCOUNTS AND LOCAL BRANCHES OF MARKET LEADER WELLS FARGO. THE EXACT PIECE OF THE PIE FLAGSTAR KEPT IS UNCERTAIN, BUT WE DO KNOW THAT WELLS FARGO TOOK MOST OF THE MONEY OUT OF FORT WAYNE. THAT CREATED A NEW NUMBER ONE IN LOCAL DEPOSITS CHASE BANK, BUT THREE LOCALLY HEADQUARTERED INSTITUTIONS SEEMED TO DO VERY WELL: STAR BANK UP 11.7%, LAKE CITY BANK UP 12% AND THREE RIVERS UP 18%. ALL TOOK ADVANTAGE OF THE CUSTOMER UNEASE FROM THE WELLS FARGO SALE, JIM MARCUCCILLI: WHAT WE ATTEMPTED TO DO WAS TO HEIGHTEN THE AWARENESS TO THE CUSTOMERS AND THE CONSUMERS THAT THERE WAS GOING TO BE A CHANGE AND THAT THEY HAD AN OPTION. AND WE FELT WE WOULD BE ONE OF THOSE TO BE AN OPTION FOR THEM TO MAKE A CHANGE. AND THEY WORKED VERY SUCCESSFULLY. DIRK: ALL THREE SAY THE GROWTH ALLOWS THEM TO REINVEST LOCALLY. ERIC OTTINGER: THE PRIMARY REASON FOR GROWING DEPOSITS IS THAT WE CAN REINVEST THOSE MONIES BACK THROUGH LOANS, AND SO TO INDIVIDUALS, WHETHER IT’S A HOME OR AUTO FOR BUSINESSES THAT ARE LOOKING TO EXPAND THEIR OPERATION WE SEE AS THE GREAT OPPORTUNITIES COMMUNITY BANK TO REINVEST RIGHT BACK INTO OUR MARKET WITH THOSE SAME DEPOSITS. DIRK: STABILITY IS SOMETHING THEY THINK CUSTOMERS ARE LOOKING FOR DON: BEING A CREDIT UNION IN A COOPERATIVE, THE LIKELIHOOD THAT WE SELL IS NIL, HEY, YOU CAN FEEL GOOD ABOUT BEING A LOCAL DECISION INSTITUTION THAT HAS THE PRODUCTS AND SERVICES THAT YOU WANT AND YOU LIKELY WILL NOT HAVE TO GO THROUGH THIS AGAIN. MULTIPLE FACTORS ARE AT PLAY IN THIS DATA AND IT’S BEST USED AS A MEASURE OF MOMENTUM. YOU CAN SEE ALL THE NUMBERS RIGHT NOW ON WANE.COM BANKING EXPERTS I TALKED WITH SAID THE TRUE TEST FOR FLAGSTAR WILL BE THE 2020 REPORT.

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