Wells Fargo leads way, as region's bank deposits grow

Wells Fargo strengthened its hold on bank deposits in Hampton Roads during the past year with a 23 percent share of the market at the end of June, according to the Federal Deposit Insurance Corp. Its share climbed from slightly more than 20 percent a year earlier.

The bank held $5 billion of Hampton Roads' deposits, an increase of $932 million, or almost 23 percent, according to the FDIC's annual report on bank deposits by market.

Part of the increase was because of the conversion of its predecessor, Wachovia Bank, to Wells Fargo and a realignment of their deposits, said Kristy Marshall, a Wells Fargo spokeswoman, on Monday. Also, "we did see more consumers and businesses keeping more money in their deposit accounts," she said.

San Francisco-based Wells Fargo & Co. acquired Wachovia at year-end 2008 and completed the consolidation of Wachovia's Virginia operations in August.

Hampton Roads' bank deposits totaled $21.75 billion at the end of June, an increase of 7 percent from $20.24 billion one year earlier. Deposits statewide rose 6 percent to $228 billion, according to the FDIC. Part of the growth appeared to be driven by depositors' wariness of risks in the stock market and other investments.

The FDIC data, which include breakdowns by locality and institution, are closely watched because deposits are the raw material for most bank loans, especially loans to consumers.

Several institutions in the region, including SunTrust, TowneBank, BB&T and Bank of America, attracted greater deposits during the 12 months through June 30. These four, together with Wells Fargo, accounted for 75 percent of the region's deposits. That was up from 72 percent a year earlier.

The growth wasn't universal. Deposits at Bank of the Commonwealth fell $128 million, or almost 13 percent, amid continued financial difficulties and efforts to shrink in size. State regulators closed the Norfolk-based community bank Sept. 23, citing concerns about Commonwealth's safety and soundness. The FDIC sold most of its deposits to Southern Bank and Trust Co. of Mount Olive, N.C., which was seeking a presence in Hampton Roads.

Meanwhile, Bank of Currituck in Moyock, N.C., sold $155 million of deposits and some of its assets in December to TowneBank and surrendered its banking license. Six of its branches reopened as TowneBank branches.

At Norfolk-based Bank of Hampton Roads, deposits fell by $112 million, or 14 percent, amid restructuring efforts. When ranked by market share, it remained in seventh place.

Tom Shean, (757) 446-2379, tom.shean@pilotonline.com