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The 30 largest Banks operating in Orange County grew deposits at a slower rate this year amid stiff competition.
Deposits increased 3% to $42.8 billion for the 12 months ended June 30, according to this week’s Business Journal list.
It’s another year of growth in local deposits, though it’s down from the 12% growth rate Banks saw a year earlier.
Commercial banks across California grew deposits by 3% to $530 billion as of June 30, according to the Federal Deposit Insurance Corp.
Nationally, banks posted 8.5% deposit growth during the same period, about the same rate as a year earlier, according to the FDIC.
Banks are in a tough market.
Customers are shopping around, chasing the best rates of return on their money. This has led banks to advertise aggressive rates that often put a squeeze on profit margins.
“The deposit market is definitely competitive right now,” said Jim Lasher, executive vice president at No. 14 Centennial Bank in Fountain Valley. “Depositors are much more savvy today than just four or five years ago. There’s not the loyalty that there used to be.”
Eighteen banks on the list reported a gain in deposits during the 12-month period, with 11 declining and one remaining flat.
As a whole, commercial banks grew their branches here by 8%, or 31 locations, while the number of workers here jumped 6% to 13,858.
No. 18 Banco Popular, owned by Puerto Rico-based Popular Inc., led the local worker gain by percentage.
Banco Popular moved its California headquarters to Anaheim from Santa Fe Springs in March and added three branches inside Wal-Mart stores.
The bank more than doubled its workers to about 230 after it opened 10 local branches a year ago.
Banco Popular saw local deposits fall 9% to $427 million.
The Anaheim site was a good move for the bank as it continues its OC push, said Vernon Aguirre, California regional executive for Banco Popular.
“As we looked to see where our customers were located, we found that Anaheim was in the center,” Aguirre said. “Anaheim is pro-growth and pro-business.”
Banks saw a pickup in commercial real estate lending and money management services, executives said.
The state’s top two banks held their spots on the list again,No. 1 Charlotte, N.C.-based Bank of America Corp. and No. 2 San Francisco-based Wells Fargo
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