Wells Fargo Grows MN Deposits, Widens Lead on U.S. Bank
Wells Fargo has boosted its deposit base in Minnesota and widened its lead over Minneapolis-based U.S. Bank, according to data released Tuesday by the Federal Deposit Insurance Corporation (FDIC).
San Francisco-based Wells Fargo continued to hold the largest share of bank deposits in Minnesota, with $86.5 billion worth of deposits in the state as of June 30—up 88 percent from the deposits it held at the same time last year. The bank held 43 percent of all deposits across 428 FDIC-insured banks in the state—up from its 30.5 percent market share last year.
Meanwhile, Minneapolis-based U.S. Bank came in at a distant second, holding 22.5 percent of the state’s deposit base. The bank’s Minnesota deposits grew 20 percent year-over-year to total nearly $45.3 billion, but its share of the state’s deposit market slipped slightly from 25 percent last year.
Wayzata-based TCF Bank held the third-largest share with nearly 2.6 percent of the state’s deposit market. Ameriprise Bank, at 2.5 percent, followed closely and was trailed by BMO Harris Bank, Bremer Bank, Associated Bank, KleinBank, Think Mutual Bank, and Anchor Bank, which rounded out the top 10.
A Wells Fargo spokeswoman told the Star Tribune that there was no single driver responsible for the bank’s jump in deposits and attributed it to general growth across multiple business lines and growth in its Minneapolis-based national trust business.
The big jump is reportedly also attributed to how the FDIC classifies deposits. Certain deposits that were considered foreign deposits last year were considered domestic this year, according to the Star Tribune.
Christine Hobrough, region manager and senior vice president at U.S. Bank, told the Minneapolis newspaper that she’s not worried about Wells Fargo’s growth, pointing out that U.S. Bank grew its Minnesota deposits despite its local market share slipping.
“We’re still seeing healthy competition among all of us,” she said.
But Erik Oja, bank equity analyst at S&P Capital IQ, called Wells Fargo’s dominance in Minnesota, “probably a pretty unhealthy sign,” the Star Tribune reported.
According to the FDIC, Wells Fargo has 169 branches across the state, while U.S. Bank has 142.