A Webster Bank branch in Boston, Massachusetts. Commercial Record file photo
Webster Bank was the only bank in the top 10 deposit-holders in Connecticut that registered an increase in deposits as bank customers scurried to spread their money around after the bank failures this spring, according to the latest FDIC deposit data.
Being the second-largest deposit holder, Webster saw its Connecticut deposits go up by $7 billion to $32.9 billion from $25.9 billion on June 30, 2022. Webster called itself as a safe haven by depositors at the height of bank failures in March, trusting the bank’s “conservative risk-management approach”.
One of the casualties of the bank failures, New York’s Signature Bank, used to be the 12th-largest deposit holder in Connecticut as of June 30 last year, with $2.1 billion in recorded deposits. Despite the bank being absorbed by New York-based Flagstar Bank, Connecticut deposits of Flagstar were down to $824 million – 26th place in FDIC’s latest list.
Another failed bank, First Republic Bank, had $943 million in-state in deposits and ranked the 23rd-largest deposit holder in June 2022. JPMorgan Chase, First Republic’s acquirer, ranked consistently at 4th place and recorded $9.7 billion in deposits as of the end of June, which is lower than the combined deposits from the two banks last year at $11 billion.
Meanwhile, BNY Mellon saw a wipeout of the $302 million Connecticut deposits it had mid-year 2022. During its second-quarter earnings call, the New York-based bank reported deposit outflows due to panicked consumers after a series of bank failures.
Citibank – at 10th place this year – also saw a stark difference in in-state deposits, dropping to $3.1 billion from $5.3 billion last summer.
The FDIC data also shows a healthy mix of losers and gainers of deposits among banks, regardless of the size.
Here are the rest of the top 10 banks in Connecticut in terms of deposits, as of June 30, 2023:
- First place – Bank of America, $39.6 billion from $44.7 billion
- Third place – M&T Bank, $19.4 billion from $24.8 billion
- Fifth place – TD Bank, $8.9 billion from $9.8 billion
- Sixth place – Wells Fargo Bank, $8.6 billion from $9.9 billion
- Seventh place – Liberty Bank, $5.8 billion from $6.1 billion
- Eighth place – KeyBank, $4.7 billion from $5.4 billion
- Ninth place – Citizens Bank, $3.3 billion from $3.5 billion
