Chicago bank deposits ranking lists JP Morgan Chase, Wintrust – Finance News

on Oct4

3 October 2017 | 6:39 pm

The Chicago area just experienced its slowest bank-deposit growth in nearly two decades.

Total deposits in the Chicago metropolitan area advanced just 1 percent to $395 billion in the year ending June 30, according to Federal Deposit Insurance Corp. data released today. The last time deposits grew at that pace was the year ending June 30, 1998, when the stock market was at a fever pitch, making stashing cash in the bank unappealing.

It’s not surprising, then, that most large retail banks serving the Chicago market essentially ran in place when it came to deposits in the past year.

The two prime exceptions were lenders taking far different approaches to the retail market. Market leader JPMorgan Chase, the nation’s largest bank, boasts the area’s largest branch network by far and a host of technological services.

Rosemont-based Wintrust Financial, the area’s fifth-largest deposit holder, takes a traditional community banking approach, selling to different parts of the metro area under more than 10 separately chartered and branded banks. It seeks to negate the advantage of Chase’s huge footprint by covering fees for customer use of out-of-network ATMs.

CHASE’S SHARE

Leaving out main-branch deposits that tend to reflect movement of large-company deposits between markets, Chase’s retail deposits in the Chicago area grew by more than $4 billion in the year that ended June 30. That was a 9 percent increase and gave the bank 22 percent market share.

Wintrust’s deposits increased 12 percent, to $21.2 billion from $18.9 billion. Virtually all of that growth was organic, as the previously acquisitive bank has slowed its pace of deal-making. Wintrust’s market share now is 5.4 percent, up from 4.9 percent a year before.

The sluggish growth in market-wide deposits is hard to explain. Companies and wealthy households that had stashed more of their cash in banks are starting to look more to higher-yielding alternatives, which could be part of the problem.

OTHER CITIES’ GROWTH

But other big-city markets didn’t show the same trend over the past year. The New York metropolitan statistical area saw deposit growth of 10 percent, while the Los Angeles area grew 6.5 percent.

Also holding the area back could be its relatively slow economic growth and loss of population.

The pecking order of local banks in terms of deposit share isn’t changing much. The top three continue to be Chase, BMO Harris and Bank of America.

Chicago-based Northern Trust, which caters to wealthy individuals and institutional investors all over the country, was No. 4.

After Wintrust at No. 5, the rest of the top 10 locally this year were PrivateBank & Trust (now CIBC following the bank’s acquisition by that Canadian bank), New York-based Citibank, Chicago-based MB Financial, Pittsburgh-based PNC Bank and Minneapolis-based U.S. Bank.



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