FDIC data shows bank deposits declined 17% in Dallas-Fort Worth


Author: Holden Wilen (Dallas Business Journal)
Published: 1:55 PM CDT September 26, 2023
Updated: 1:55 PM CDT September 26, 2023

DALLAS — Read this story and more North Texas business news from our partners at the Dallas Business Journal

Deposits held by banks in the Dallas-Fort Worth region declined more than 17% on a year-over-year basis as of the end of the second quarter, according to data released Friday by the Federal Deposit Insurance Corp.

Banks across North Texas held a cumulative total of $714.7 billion in deposits as of June 30, compared to $861.9 million the same time a year ago.

The decline in deposits comes as consumers keep spending and moving their money in search of higher yields as interest rates continue to soar. Despite the losses, the FDIC’s latest data shows some of the biggest regional banks in North Texas managed to grow deposits, reversing a trend earlier this year when customers scrambled for safety following the failures of Silicon Valley Bank, Signature Bank, and First Republic Bank in the spring.

The top three banks for deposits and market share in DFW remained the same as a year ago, consisting of national players Bank of America, JPMorgan Chase & Co. and Wells Fargo Bank. It should also be noted that deposits also declined for some banks in the region, such as Texas Capital Bank, tied to shifts in strategy, seeking to lessen exposure to areas that are more sensitive to rate shifts.

Bank of America continues to hold the top spot $135.9 billion in local deposits and 17.4% market share. The Charlotte, North Carolina-based financial giant’s deposits decreased 8.6% but market share grew 161 basis points.

JPMorgan Chase ranked second with $91.1 billion in local deposits and 12.8% market share. Deposits were down 10% while market share grew a whole percentage point.

Wells Fargo rounded out the top three with $24.5 billion in local deposits and 3.4% market share. The San Francisco-based behemoth’s deposits declined more than 35%, and market share declined 21 basis points.

The rest of the top 10 saw several changes, with several locally headquartered regional banks growing deposits significantly.

Dallas-based Comerica Bank made the biggest move, jumping from No. 9 a year ago to No. 4 as of June 30. The bank’s deposits almost doubled to $13.9 billion and market share increased more than 100 basis points to 1.95%.

Texas Capital, also based in Dallas, rounded out the top five, though its deposits decreased more than 25% to $13 billion amid an ongoing multi-year transformation being steered by CEO Rob Holmes.

Dallas-based Nexbank remained at No. 6 with $11.3 billion in deposits, an 11.9% increase from a year ago.

San Antonio-based Frost Bank fell from No. 5 to No. 7 after deposits declined 10.7% to $10.3 billion.

Two locally headquartered regional banks that have plans to grow significantly over the next few years moved up in the rankings.

Dallas-based Veritex Community Bank moved into the top 10, ranking No. 8 after seeing deposits grow 10.7% to $7.7 billion over the last year. CEO Malcolm Holland has said he wants the bank to reach $20 billion in assets within the next three or four years.

Similarly, McKinney-based Independent Financial moved up a spot to No. 9 with a 5.9% increase in deposits to $7.4 billion.

Houston-based Prosperity Bank completes the top 10 , falling from No. 7 a year ago following a 20% decline in local deposits to $6.5 billion.

BOK Financial, the Oklahoma-based parent of Bank of Texas, fell out of the top 10 to No. 12 as deposits decreased almost 24% to $5.9 billion.

Two banks crossed the $1 billion mark this year. Dallas-based Texas Security Bank reached $1 billion after deposits grew 17.9%. Oklahoma City-based Interbank grew to $1.1 in local deposits with a 14.4% increase.

Dallas-based Vista Bank had one of the largest increases of any bank as deposits grew more than 71% to $826.8 million. Vista completed an acquisition of Charis Bank earlier this year.

Several out-of-state banks looking to make their mark in North Texas also saw notable increases.

Charlotte-based Truist Bank, formed by the merger of SunTrust and BB&T in 2019, increased deposits more than 26% to $4 billion and moved into the top 15.