Booming banks

Basking in the glow of the Reno/Sparks healthy business climate, almost all area banks showed deposit increases over last year, according to a new Federal Deposit Insurance Corporation deposit market share report.

"If you're in banking and you're not making money, there's something wrong," says Dennis Williams, president of community banking at First National Bank of Nevada.

The FDIC market share report for the Reno/Sparks area showed an increase from deposits of $4.48 billion at the end of June 2003, to $5.67 billion as of June 2004, when the annual reports are compiled.

(To reflect regional banking more accurately, figures do not include the Charles Schwab Bank or Farm Bureau Bank.) That's a healthy increase, according to Jim DeVolld, executive vice president and chief credit officer at First Independent Bank of Nevada."It's one that reflects an influx of depositors and people moving into the area," he adds.

Blame that one on California migration again, but this time, it's adding dollars to Nevada's vaults despite Arnold Schwarzenegger's attempts to keep businesses and individuals from boxing up their assets and taking them to Nevada, says Williams.

Deposit dollars jumped by upwards of $361 million at Wells Fargo, $165 million at the Bank of America, and by $68 million at Nevada State Bank, the top three banks.

All three of the big banks held onto their positions in the market,maintaining the one, two, and three spots from 2003, but all three, at the same time, lost market share of more than 1 percent -- with each percentage point representing about $56.7 million in deposit dollars.

That market share is going to mid-sized and community banks, according to Williams, further indicating that northern Nevada's community banks are scraping their business increases off the big banks' desks, not each other's.

"We finance a ton of developers,"Williams adds,with many of his customers coming in from California.

And his take on the development market? "Bullish through 2005," he says.

First National Bank of Nevada took the biggest market share leap,moving up from ninth place in 2003 to fifth this year and capturing 6.75 percent of the market in 2004.

That puts it on the top of the list of community banks.

First National Bank of Nevada, which has three northern Nevada branches, has grown considerably.Williams measures the size of the bank in part by its loan capabilities."Four years ago," he says,"the biggest loan we could make was $4 to $5 million.Now we can loan $40 million." Nevada Security Bank, a community bank that did well, picked up 2.76 percent of the market in 2004.

"For the age of the bank (less than three years) this is super positive," said Dave Funk, president and director.

Since the FDIC report was compiled, Nevada Security added a new branch in northwest Reno and gained federal and state approval to open a fourth branch in Spanish Springs Valley for early 2005.

Is this a diversification for the businessbased bank into a more consumer-oriented market?

"The mix will probably change in the northwest," says Funk, noting northwest Reno is more consumer-oriented,"but we'll stay predominantly a business-oriented bank."

First Independent Bank of Nevada, one of the community banks to lose some market share, is growing, too, says DeVolld, who focuses on the overall growth in deposits.

The bank, which opened its new high-profile flagship building on Kietzke in September, and is currently building a northwest Reno branch, is "very enthusiastic," he says, adding, "We're bullish on the rest of this year and on 2005 for growth."

And the big banks that gave up market share? Wells Fargo, too, is looking at the bigger picture, says Chad Osborne, senior vice president, Nevada business banking.

We're looking in terms of increased deposit dollars and number of households served," he says.

The northern Nevada economy continues to be strong, he adds, so he remains bullish on a market that he describes as "vibrant." Banking market share winners, losers in Washoe County 2003 2003 2004 2004 Change deposits market deposits market in share ($000) share ($000) share Wells Fargo $1,624,824 36.28% $1,986,254 35.00% -1.28% Bank of America $877,703 19.60% $1,042,646 18.37% -1.22% Nevada State $498,264 11.13% $566,519 9.98% -1.14% US Bank $396,194 8.85% $541,244 9.54% 0.69% First Nat'l Bank $111,199 2.48% $382,944 6.75% 4.27% Citbank West $336,305 7.51% $208,833 3.68% -3.83% First Independent $196,470 4.39% $208,224 3.67% -0.72% Nevada Security $37,590 0.84% $156,799 2.76% 1.92% Heritage Bank $123,803 2.76% $139,562 2.46% -0.30% Bank of West $115,667 2.58% $139,006 2.45% -0.13% Colonial Bank $61,433 1.37% $99,976 1.76% 0.39% No.Nevada Bank $65,167 1.46% $85,696 1.51% 0.06% World Savings $83,871 1.48% 1.48% Sun West $33,887 0.76% $33,020 0.58% -0.17% Total deposits $4,478,506 $5,674,594 Figures don't include the Reno-based Charles Schwab Bank national headquarters, which draws deposits from out of area or Farm Bureau Bank, which no longer is in area.

Source: FDIC Banking market share in Carson City 2003 2003 2004 2004 Change deposits market deposits market in share ($000) share ($000) share Wells Fargo $195,142 22.83% $220,006 22.23% 0.6% Bank of America $110,160 12.89% $119,378 12.06% -0.83% Citibank West $116,109 13.58% $105,149 10.62% -2.96% US Bank $87,494 10.23% $88,964 8.99% -1.24% Business Bank $68,934 8.06% $83,765 8.46% 0.4% Nevada State $68,612 8.03% $73,944 7.47% -0.56% - First National $55,431 6.48% $65,878 6.66% 0.18% Irwin Union $49,134 5.75% $58,272 5.89% 0.14% Bank of West $46,161 5.40% $53,836 5.44% 0.04% Colonial $46,399 5.43% $53,032 5.36% -0.07% Eaglemark Savings $500 .06% $25,852 2.61% 2.55% Heritage Bank $23,315 2.36% 2.36% Imperial Capital $10,850 1.27% $17,479 1.77% 0.5% No.

Nevada Bank 1,000 0.1% 0.1% Total deposits $854,926 $989,870 Source: FDIC