Analysts say growth in federally insured deposits at all major Nashville area banks reflects strength of the region’s economy
Federally insured deposits at Nashville area banks grew 10 percent overall for the past year through June 30, a growth analysts say reflects strength of the region’s economy.
And for the first time, homegrown Pinnacle Bank officially passed SunTrust Bank to rank as the third-largest player in the metro statistical area by market share of such federally insured deposits, according to Federal Deposit Insurance Corp. data released Tuesday.
All of the major local banking players including market leaders Bank of America and Regions Bank grew their deposits, pushing the total to $57.4 billion on June 30, 2017.
“The economy is vibrant and as a result of that banks here have good deposit growth,” said analyst Jeff Davis of Mercer Capital in Nashville. “Much of the deposits that are being raised are being relend into the economy to fund businesses and consumers.”
The deposit figures that the FDIC releases each year reflect money held in checking and savings accounts and holdings such as certificate of deposits that are federally insured. They don’t take into account funds held in mutual funds and other investment accounts.
Pinnacle’s growth is related partly to the Nashville-based bank buying fellow homegrown Avenue Bank last year, which technically made it the Metro area’s No. 3 banking player.
Overall, the number of bank offices in the metro area fell 1.2 percent to 591 as of June 30.
Statewide, federally insured deposits rose 6.7 percent to $148 billion as of June 30 with the number of bank offices down 1.8 percent to 2,115. First Tennessee, Regions and SunTrust remained the top three players statewide with market shares of 14.44 percent, 12.64 percent and 9.25 percent, respectively, as of June 30, according to the FDIC data.
In Davidson County, federally insured deposits rose 9.8 percent to $33 billion as of June 30. Bank of America, Regions, SunTrust and Pinnacle remained the top four leaders.
Deposits rose 14 percent to $8.9 billion in Williamson County with Franklin Synergy Bank, Bank of America, Regions and Pinnacle the leaders by deposit market share.
For Rutherford County, total deposits were $4.2 billion as of June 30, up 14.6 percent. Pinnacle Bank, Franklin Synergy and First Tennessee have the largest market shares.
Wilson Bank and Trust, Pinnacle Bank and First Freedom Bank are the market leaders in Wilson County where overall deposits rose 6.8 percent to $2.5 billion on June 30.
Deposits in Sumner County, meanwhile, rose 7.5 percent to $3.3 billion. First Tennessee remains the No. 1 player, but Regions overtook Volunteer State Bank for the No. 2 spot.
In Cheatham County, overall deposits rose 14.5 percent to $455 million. Community Bank & Trust, Heritage Bank USA Inc. and Pinnacle are the leaders in that market.
For Dickson County, total federally insured deposits rose 4 percent to $909 million on June 30. First Federal Bank, Bank of Dickson and TriStar Bank are the market leaders.