story by Kim Souza
ksouza@thecitywire.com
Consumers and businesses have socked away more than $9.053 billion in 38 banks in Northwest Arkansas as of June 30, according to the annual Federal Deposit Insurance Corp. summary of deposits report released Monday (Sept. 28).
Deposits rose 5.85% from the $8.552 billion reported in last year’s FDIC report. The uptick in deposits are in sync with the state as a whole. Deposits held in the Natural State grew to $56.497 billion over the past year, a gain of 4.99% from 2014.
The local banking sector comprises 16% of the total deposits held in Arkansas and it’s the fastest growing economic region in the state, with the Jonesboro metro area following close behind.
Arvest continues to hold the lion’s share of deposits across Northwest Arkansas commanding a 48.29% marketshare. The Fayetteville-based bank held deposits exceeding $4.371 billion in the local market as of June 30. The bank grew local deposits from $4.072 billion or 7.34% year-over-year. Its marketshare rose from 47.82% in June 2014.
Searcy-based First Security Bank held on to its second place share of 7.55% despite reporting fewer deposits. The bank held local deposits of $645.46 million, down from $681.46 million in a year ago.
Banking giant Bank of America garnered more than $359.93 million in consumer deposits in the local metro area as of June 30. Deposits rose from $321.5 million reported a year ago. Bank of America has held the third most marketshare for several years in this metro area with 3.98% of the market, rising from 3.76% last year.
In fourth place, Bank of Arkansas held a 3.67% marketshare this year with deposits of $332.362 million, compared to $291.73 million a year ago. Bank of Arkansas rose one rank over the past year, bumping Signature Bank downward.
The Bank of Fayetteville also increased its deposit marketshare over the past year enough to move into fifth place with 3.67% of the share. The bank held deposits of $314.18 million as of June, rising 8.7% from $289 million in June 2014.
Signature Bank reported bank deposits of $298.13 million as of June, which was enough to secure 3.29% of the local market share and sixth place. This compared to $297.49 million a year ago, which was good enough for the fourth place slot.
Springdale-based Legacy Bank reported bank deposits of $282.35 million, growing from $230.76 million a year ago. CEO Don Gibson recently told The City Wire the bank continues to show modest loan and deposit growth which he attributed to a stronger economy and improving consumer confidence.
The U.S. Department of Commerce reported Monday (Sept. 28) consumer spending rose at a healthy rate in August. Consumer spending advanced 0.4% compared to July, when spending also increased by 0.4%. In both months, the figures reflected strong gains in purchases of durable goods such as autos. Consumer spending accounts for two-thirds of economic activity, and the latest result supports expectations for it to remain strong in the second half of this year.
"Overall consumer spending remains robust and highlights a solid employment backdrop," said Bricklin Dwyer, an economist at BNP Paribas. "We expect firm spending ahead as employment remains solid and wages begin to accelerate."
Personal income was up 0.3% in August, helped by another solid increase in wages and salaries, according to the Commerce Dept. The result follows a 0.5% income gain in July, which had been the best showing in eight months. The personal saving rate as a percentage of disposable personal income was 4.6% in August, according to the Commerce Dept. Over the past year the annual savings rate has ranged from 5.3% of income in January to 4.6% as of August. The personal savings rate in August was flat to a year ago.
NORTHWEST ARKANSAS - SUMMARY OF DEPOSITS (June 30, 2015)
48.29% — Arvest: $4.371 billion
7.53% — First Security: $681.46 million
3.98% — Bank of America: $359.93 million
3.67% — Bank of Arkansas: $332.36 million
3.47% — Bank of Fayetteville: $314.18 million
3.29% — Signature Bank: $298.13 million
3.12% — Legacy National: $282.35 million
2.61% — Simmons First National: $236.47 million
2.39% — Iberiabank: $216.71 million
2.02% — Centennial Bank: $182.53 million
1.78% — Chambers Bank: $161.12 million
1.77% — Bank of the Ozarks: $160.63 million
1.59% — Regions Bank: $144 million
1.38% — First Western Bank: $125.15 million
1.33% — First Bank: $120.38 million
1.27% — United Bank: $115.25 million
1.27% — The Corner Stone Bank: $115.18 million
1.16% — First National Bank of Fort Smith: $105,14 million
1.12% — Bank of Gravett: $101.50 million
1.08% — Bear State: $97.49 million
1.05% — Grand Savings Bank: $95.46 million
0.92% — Today’s Bank: $83.35 million
0.76% — Pinnacle Bank: $69.14 million
0.48% — First State Bank: $43.65 million
0.46% — Anstaff Bank: $41.81 million
0.34% — First Community Bank: $30.78 million
0.33% — U.S. National Bank: $30.14 million
0.30% — Community First Bank: $21.06 million
0.29% — Parkway Bank: $26.49 million
0.17% — Great Southern: $15.60 million
0.12% — Priority Bank: $ 11.29 million
0.12% — BancorpSouth: $10.96 million
0.12% — First National Bank of North Arkansas: $10.43 million
0.06% — First National Paragould: 5.866 million
0.05% — Hometown Bank $4.252 million
0.03% — Integrity First: $2.639 million
0.02% — Intrust Bank: $1.366 million