Illinois deposits fall at lower level than the national rate

Illinois' share of total US deposits ticked up slightly during a period in which the industry saw some overall contraction in the key piece of funding.

Illinois banks and thrifts held 3.86% of the nation's deposits as of June 30, up from 3.84% in the year-ago period, according to annual Summary of Deposits data from the Federal Deposit Insurance Corp. During that time span, Illinois did see a drop in total deposits, but the drop was lower than the national rate.

As of June 30, total deposits in Illinois fell 4.3% year over year to $667.06 billion, while the entire US banking industry's deposits contracted 4.8%, marking $871.60 billion of outflows, according to the Summary of Deposits data. The drop — for each the US and Illinois — represents the first contraction of deposits on an annual basis since the data set was created in 1994.

Over the last year, banks have increasingly needed to compete for deposits as interest rates have been on the rise and customers have more yield-producing options.

Top 4 banks

Despite the changes, the four banks with the most deposits in Illinois remained the same from the prior year. JPMorgan Chase & Co. was the top bank by deposits in Illinois, with $127.08 billion in deposits, down 8.7% on a year-over-year basis. In the state, JPMorgan's deposit market share fell 92 basis points to 19.1%, and the company reduced its branches by 13 to 281.

Bank of Montreal, the parent company of Chicago-based BMO Harris Bank NA, ranked second as it recorded $94.60 billion in deposits in Illinois, up from $85.14 billion a year ago. The bank's deposit market share rose 197 basis points to 14.2%, and its branch count was unchanged at 183.

At No. 3, Bank of America Corp. logged a 16.6% decrease in deposits to $50.78 billion, with a 112-basis-point drop in its market share to 7.6%.

Rosemont, Ill.-based Wintrust Financial Corp. nabbed the fourth spot with $41.61 billion in deposits, an increase of 3.1% from the previous year. The company's market share ticked up 45 basis points to 6.2%.

On Wintrust's second-quarter earnings call, Vice Chairman and COO David Dykstra touted the company's "great position" in the Chicago market and market share in Illinois.

"If someone wants to do business with a larger bank that's located in Illinois, we're sort of the go-to bank. ... So we think we're uniquely positioned to take advantage of this, offer good products, give good service and cement ... the customer relationship," the executive said.

The top four banks by deposits in Illinois alone had 47.1% of the deposit market share in the state. Meanwhile, the market share of the remaining banks in the top 25 banks was 35.3%.

Other banks in the top 25

Chicago-based Byline Bancorp Inc., which completed its merger with in-state peer Inland Bancorp Inc. on July 1, was part of the top 25 at No. 15. Byline Bancorp's Illinois deposits rose 9.1% to $5.85 billion.

Morton, Ill.-based Hometown Community Bancorp Inc. nabbed the No. 18 spot as its deposits climbed 9.1% to $4.81 billion. On June 9, the company completed its acquisition of in-state peer Marine Bancorp Inc.

Among the top 25 banks by deposits in Illinois, HBT Financial Inc. posted the largest percentage increase in deposits at 13.5% to $4.06 billion. The Bloomington, Ill.-based company closed its acquisition of in-state peer Town and Country Financial Corp. on Feb. 1.

Chicago-based Northern Trust Corp. booked the largest percentage decline in deposits among the top 25 at 30.4% to $26.78 billion. This brought the company's market share down by 151 basis points to 4.0%.

Wells Fargo & Co. reported the second-largest decrease among the top 25 at 28.2% to $7.64 billion, pushing its market share down by 38 basis points to 1.2%.

Some of the other Illinois-based banks that made it to the top 25 are First Busey Corp., headquartered in Champaign; Midland States Bancorp Inc., headquartered in Effingham; and Old Second Bancorp Inc., headquartered in Aurora.