Market Share rankings reveal drop in deposits

Bank deposits are down in parts of the Northern Colorado market, according to the latest Federal Deposit Insurance Corp. figures.
First National Bank held onto the top spot among financial institutions doing business in Larimer County, but it, too, has seen a drop in deposits, the numbers show.
First National’s deposits have decreased from $1.2 billion in 2007 to just over $1 billion today.
First National holds 21.15 percent of the market, compared to 30.1 percent in 2007, while Wells Fargo, ranked second in Larimer County, increasing its market share from 11.25 percent in 2007 to 16.51 percent today.
Mark Driscoll, president of First National, said that it was an “interesting” year for banks, with new rules imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act and with consumers learning to navigate the new economic environment.
The decrease in deposits can be explained in part by the decrease in loan demand, according to Driscoll.
“Deposits are tied to loan demand, and our loans outstanding have decreased,” he said.
The same can be said about most banks.
Real estate loans in particular have fallen off as that market remains depressed.
In Weld County, deposits have decreased, too. The numbers look especially dramatic when viewed over the five-year span. Between 2007 and this year, deposits in Weld fell from $3.6 billion to $2.9 billion. 
In 2007, New Frontier Bank was the top dog in Weld, with 36.13 percent of the market share, far outpacing Wells Fargo, which sat in second place with 9.54 percent.  New Frontier failed in April 2009 and was taken over by the FDIC, with its market share divvied up between other community banks.
Today, the market share in Weld County is much more evenly divided, with Wells Fargo in the top spot, with 16.15 percent of the market. Bank of Choice, which was acquired by Kansas City, Mo.-based Bank Midwest National Association in July, is listed second, with 10.29 percent. Bank of Colorado is the No. 3 bank in Weld County, with 9.42 percent.
The first decrease in deposit dollar amount in Weld is seen between 2008 and 2009, with county-wide deposits dropping from $3.8 billion to just above $3 billion.
Cody Fullmer, branch president at Bank of Colorado, attributes the decrease in Weld County deposits to the loss of brokered deposits held at New Frontier, which offered high interest rates to attract depositors from outside of the area. 
“Brokered deposits can come from anywhere, they’re not necessarily community dollars,´ said Fullmer.