Last week we looked at the state of banking in Georgia based on the FDIC’s latest summary of deposits information, and now we turn our focus to Atlanta. The overall number of banks in the Atlanta Metropolitan Statistical Area (the 9th largest MSA in the country), fell from 138 to 97, a 30% decline. As in broader Georgia, this number overstates the decline of independent banking organizations, as the number of holding companies operating multiple bank charters in the Atlanta area fell from 4 to 1, with the number of unaffiliated financial institutions falling from 126 to 96 (a 24% decline).
The total amount of deposits assigned to branches in the Atlanta MSA rose from $95 billion to $146 billion, a 54% increase (as compared to a 43% increase for the entire state, and an increase of only 23% in the state but outside the Atlanta MSA). The total number of branches in the MSA fell from 1,342 to 1,294, a 4% decline. These effects combined to increase the average amount of deposits per branch in Atlanta from $71 million to $113 million, a 60% increase.
Like Georgia more broadly, between increasing total deposits and industry consolidation, Atlanta saw an increase in the number of larger institutions operating within the MSA. The number of institutions with more than $2 billion in deposits increased from 6 institutions to 12, while the number of institutions with between $500 million and $2 billion declined slightly from 10 to nine. The number of institutions with between $250 million and $500 million in deposits fell from 23 to 14, a 39% decline, the number of institutions with between $100 million and $250 million in deposits fell from 41 to 27, a 34% decline, and the number of institutions with less than $100 million in deposits fell from 42 to 30, a 29% decline. Consistent with these trends by asset size, but potentially inconsistent with a broader message of unending industry consolidation, the number of banks in the Atlanta MSA with more than 1% of the total deposits in the MSA increased from 9 to 14 banks (and the number of Georgia-based institutions with more than 1% of total deposits increased from 5 to 8).
At the top of the list, with Wells Fargo replacing Wachovia, the top 6 institutions in Atlanta deposits remained the same, although the order shifted slightly. SunTrust had the largest share in 2005 and 2015 (increasing from 25% to 27% market share, although also recognizing that certain deposits could be booked in Atlanta notwithstanding the original source). Bank of America rose from third to second, while Wells Fargo is now in third, falling slightly from Wachovia’s second in 2005. BB&T gained two spots to have the fourth largest market share in 2015, while Synovus and Regions both fell one spot to round out the top 6 in fifth and sixth place. The top three deposit gatherers held 64.9% of the total MSA’s deposits in 2015, up from 61.4% in 2005, while the top six held a 75.9% market share, up from 70.7%. The next 20 largest depository institutions in Atlanta as of June 2005, however, experienced significant change. Only six of the 20 continue to operate, and remain in the same category in 2015, but seven were sold and seven went into receivership in the intervening 10-year period. Of the 14 new entrants in that group of 20, 7 are out-of-state regional or national banks, while the other 7 are Georgia-based financial institutions.
We also looked more closely at the 20 largest deposit gatherers in Atlanta in both time periods. In 2005, this meant total deposits of at least $417 million and a 0.44% market share, while in 2015, it meant total deposits of at least $742 million and a 0.51% market share. In 2005, it consisted of 14 Georgia-based financial institutions, while in 2015, it consists of only 10 Georgia-based institutions. Six CEO’s are in both lists, although Kessel Stelling of Synovus/Riverside and Joe Evans of State Bank/Flag get bonus points for leading different organizations in the top 20 of 2015 versus 2005.