Big banks in Michigan lose market share
The largest banks in Michigan are losing market share and Chase Bank now has the most deposits in the state, according to new data released Thursday by the Federal Deposit Insurance Corp. As of June 30, the five biggest banks in Michigan — Chase Bank, Comerica Bank, PNC Bank, Bank of America and Fifth Third Bank — accounted for 55 percent of all deposits in the state. That’s down from 57.3 percent on June 30, 2009. Overall, deposits fell by $8.1 billion or 5 percent as the number of banks shrank from 173 to 165. Chase Bank is now the largest bank in Michigan in terms of deposits, edging out Comerica Bank. It has added five branches in the state since the beginning of 2009 and closed one office in the Grand Rapids area. “We have continued to invest in our network, improving our branches and adding ATMs at offsite locations like Detroit Metro Airport,” said Chase spokeswoman Mary Kay Bean. Bank of America saw its total deposits in Michigan plunge from $23.1 billion to $14.2 billion. It’s now the fourth-largest bank in the state, down from No. 2 in 2009 and No. 1 in 2008. It entered the Michigan market in October 2007 by acquiring LaSalle Bank. Diane Wagner, a Bank of America spokeswoman, said the decline in deposits was because of a reclassification of certain corporate deposits to non-deposit products such as IRAs. Retail deposits from the bank’s consumer banking and wealth management businesses grew by half a percent, Wagner noted. Over the last year, big banks have been the target of a backlash among some consumers and businesses upset about taxpayer money being used to bail these companies out. In Michigan, these banks have been accused of redlining the state and the auto industry by pulling credit lines and refusing to make new loans. “Due to the economy, Michigan banks are struggling like every business in the state,” said Gail Madziar, a Michigan Bankers Association spokeswoman. “Overall they are faring better than their counterparts in many other states. The only thing that can really help the industry is jobs.” Credit unions in Michigan have capitalized on the bank backlash, spending a record amount on advertising this year. The nonprofit cooperatives have gained nearly 15,000 customers so far this year and credit union savings deposits increased by 7.5 percent through the second quarter, according to the Michigan Credit Union League. “It’s going to be a banner year for credit unions,” said David Adams, CEO and president of the MCUL. Contact KATHERINE YUNG: (313) 222-8763 or kyung@freepress.com
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