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Deposits at nearly every Connecticut bank increased in 2020, as the state’s total bank deposits grew by more than 16 percent, according to the FDIC’s annual Summary of Deposits survey.
The annual survey captured bank deposits on June 30. Banks with offices in Connecticut had $162.88 billion in deposits on June 30, a 16.5 percent increase over the same day last year, when banks held $139.8 billion in deposits.
With $40.4 billion, Bank of America had 24.8 percent of Connecticut deposits, the top market share. Bank of America’s deposits on June 30 increased 26 percent from the same day last year.
Bridgeport-based People’s United Bank’s had 16.8 percent of Connecticut’s deposits, while Waterbury-based Webster Bank had 14.3 percent of the market share. Combined, these top three banks had 56 percent of the state’s bank deposits. Last year, they had 52.2 percent of the market share.
Banks have reported the Paycheck Protection Program, other government aid, less spending and tax deadline extensions as some of the factors contributing to higher deposits this year.
People’s United Bank, which acquired United Bank last November, saw its deposits grow by 29.5 percent to $27.48 billion on June 30. Webster Bank had nearly $23.3 billion in deposits, 18 percent more compared to June 30, 2019.
California-based First Republic Bank, which has one branch in Greenwich, saw deposits increase by 38.3 percent, the state’s largest year-over-year growth. First Republic now has $649.5 million in deposits.
One of Connecticut’s small community banks had the next largest deposit growth. Windsor Federal Savings’ deposits grew to $590 million, a 36.1 percent year-over-year increase. Windsor Federal Savings has about $673 million in total assets.
Other banks with more than 30 percent deposit growth include The National Iron Bank, Liberty Bank, Massachusetts-based Westfield Bank and Connecticut Community Bank.
A couple of banks did not see deposits grow in 2020. DR Bank, previously known as Laurel Road Bank, saw deposits shrink by more than 7 percent, and Buffalo-based Manufacturer’s Traders and Trust Company, which has nine offices in Connecticut, saw deposits decrease by almost 4 percent.
Connecticut saw deposits grow despite losing HSBC, which closed its three Connecticut branches in 2020. On June 30, 2019, HSBC had held $307 million in deposits at its Connecticut branches.
The Connecticut market now has 56 FDIC-insured institutions, down from 59 last year. In addition to HSBC moving out of the state and the United Bank acquisition, Simsbury Bank was acquired by Liberty Bank.
The state had 1,094 banking offices on June 30, down from 1,129 the same day last year. Bank of America has six fewer offices in Connecticut compared to last year, while Wells Fargo and Citizens Bank each have three fewer offices. Last year, People’s United and United Bank combined had 193 banking offices. People’s United, which closed multiple branches in Connecticut and Massachusetts following the merger, had 174 offices on June 30.
