Colorado Springs-area financial deposits outpace national average

October 5, 2016 Updated: October 5, 2016 at 5:53 pm
0

Colorado Springs-area financial institution deposits at mid-year grew at the fastest rate in four years, ahead of the national average but slightly slower than the statewide average.

Area deposit growth was the highest since growing 10.2 percent in 2012, the fastest in 14 years. Banks and credit unions operating in the area reported a 6.1 percent increase in deposits since June 30, 2015, to $11.6 billion, according to reports from the Federal Deposit Insurance Corp. and the National Credit Union Administration. Local deposits grew 5.3 percent last year.

Tom Binnings, senior economist for Summit Economics LLC, a local economic research and consulting firm, said the gains reflect growth in residents' wages and a higher savings rate.

"Deposits are growing at rate that is a (percentage) point or two higher than population and wage growth, so the difference can be explained by a higher savings rate. People are putting money in the bank while they decide how to spend it," which could fuel more consumer spending later, he said.

Other details from the reports include:

- Nearly half of the deposit growth came in just three institutions - market share leader Ent Credit Union added $163.1 million, or 6.3 percent growth; Academy Bank landed $93.9 million, or 45.9 percent growth, and Kirkpatrick Bank brought in nearly $60 million, or 68.8 percent growth.

Paul Holewinski, CEO of Academy Bank parent Dickinson Financial Corp., said bank began a "concerted effort to grow both loans and deposits," including a successful certificate of deposit promotion early this year, after federal regulators released the bank from federal orders that required them to restrict lending, pay dividends to owners and take steps to reduce problem loans.

Cynthia Archinia, vice president of Kirkpatrick Bank, said a 3½-year-old management team that focused on broadening the bank's local business lending and community involvement with nonprofit organizations has been paying off by adding nearly $100 million in local deposits during the past two years.

- Banks grew their deposits slightly faster than credit unions, expanding by 6.2 percent to $7.71 billion, while credit union deposits rose 6 percent to $3.93 billion. Banks held two-thirds of all financial institution deposits.

- Statewide, bank deposits increased 7.4 percent from a year earlier to $125.3 billion. Statewide, credit union deposits were up 4.2 percent during the same period. Nationwide, bank deposits rose 5.7 percent from a year earlier to $11.3 trillion, while credit union deposits were up 7.3 percent to $1.06 trillion. Deposits in all U.S. financial institutions increased 6.4 percent from the same period a year ago to $12.4 trillion.

- Branch networks continued to shrink with local financial institutions closing three offices in the year ended June 30, or about the same rate as the state, which had 24 fewer branches than a year earlier, a 1.6 percent reduction. Nationwide, the number of branches declined 1.5 percent to 91,861, as more customers moved to online banking.

-

Contact Wayne Heilman: 636-0234

Twitter @wayneheilman

Facebook Wayne Heilman

Comment Policy

LoginORRegister To receive a better ad experience

Learn more
You are reading 0 of your of 0 free premium stories for this month read

Register Today To get to up to 4 more free stories each and every month

  • Get access to commenting on articles
  • Access to 4 more premium pieces of content!
  • See fewer annoying advertisements
We hope you enjoyed your 4 free premium stories
Continue reading now by logging in or registering
Register Now
Already registered? Login Now
Home