3Q09 Bank deposit trends

The large U.S. banks continued to reduce rates paid on interest-bearing deposits in 3Q09, as deposit competition eases.  Many banks reported q/q declines in average deposits.  However, with banks’ loan portfolios also shrinking, most of these banks improved their loan-to-deposit ratios.

The largest banks (Bank of America, Wells Fargo and Chase) offer by far the lowest rates; Wells Fargo’s rate fell 3 bps between 2Q09 to 3Q09, to 0.57%.  Regional banks maintain relatively higher rates, with KeyBank’s average rate above 2%.

For most banks, there was stronger growth in noninterest-bearing deposits, with many regional banks reporting double-digit annualized increases between 2Q09 and 3Q09.

Bank

Average Interest-Bearing Deposits ($BN, 3Q09)

Annualized Change in Interest-Bearing Deposits
(2Q09-3Q09)

Rate on Interest-Bearing Deposits (3Q09)

Rate Change (2Q09-3Q09)

Non-Interest Deposits (3Q09)

Annualized change in Non-Interest Deposits (2Q09-3Q09)

Bank of America (domestic)

$654.2

+6%

0.98%

-24 bps

$259.6

+18%

Wells Fargo

$633.4

-3%

0.57%

-3 bps

$172.6

-4%

Chase

$661.0

-7%

0.65%

-5 bps

N/A

N/A

PNC

$146.9

-13%

1.04%

-21 bps

$41.8

+8%

U.S. Bank

$129.4

+11%

0.92%

-8 bps

$37.0

-4%

SunTrust

$95.2

-2%

1.40%

-27 bps

$24.5

-1%

Capital One

$103.1

-15%

1.86%

-22 bps

$12.8

+6%

BB&T

$89.9

+56%

1.37%

-26 bps

$17.4

+50%

Regions

$73.7

-5%

1.62%

-16 bps

$21.1

+14%

Key

$54.4

-3%

2.10%

-12 bps

$13.6

+37%

Zions

$31.9

-4%

1.21%

-25 bps

$11.4

+27%

M&I

$33.5

+12%

1.58%

-13 bps

$7.9

+28%

Huntington

$33.4

-1%

1.92%

-19 bps

$6.2

+5%