Published in Finance
SOURCE: 2022 FDIC Summary of Deposits SOURCE: 2022 FDIC Summary of Deposits

CHANGE AT THE TOP: Huntington Bank now leads Grand Rapids MSA for share of deposits

BY Sunday, November 06, 2022 06:52pm

For the next year, Huntington Bank can claim bragging rights in the Grand Rapids market after edging into the leading position for deposit market share that Fifth Third Bank has held for decades.

The lead market ranking is a position that Lauren Davis, Huntington Bank’s regional president since July, intends to hang onto in the years ahead in a fiercely competitive banking market.

“I think you’ll continue to see us hold that spot. That’s going to be our focus. It is a little bit, for me, bragging rights, but it really is hard work and a focus on the client,” Davis said in an interview with MiBiz. “Our team’s really focused on deepening relationships with customers. We have a lot of the noise behind us and we’re focused on moving forward. This is an important market for us.”

The change in the Grand Rapids-area market rankings for deposit market share follows Huntington Bancshares Inc.’s June 2021 acquisition of the former TCF Financial Corp.  That deal made Huntington an even bigger player in the local market and continues to alter the banking landscape in West Michigan.

The latest Summary of Deposits that the FDIC publishes each fall lists Columbus, Ohio-based Huntington Bank as the new market leader for the Grand Rapids-Kentwood metropolitan statistical area that consists of Kent County and neighboring Ottawa, Barry and Montcalm counties.

As of June 30, Huntington Bank held $6.26 billion in deposits across the Grand Rapids-Kentwood MSA for a 19.9-percent market share, narrowly edging Fifth Third’s $6.19 billion or 19.73 percent market share.

In Kent County alone as of June 30, Fifth Third retained the top spot that it has held since buying the former Old Kent Bank more than two decades ago. However, Huntington closed the gap from a year earlier as it gained deposits and Fifth Third declined.

“Fifth Third Bank remains in the top spot in Kent County and the shift we saw in the Grand Rapids MSA report was not a surprise given the merger-related activity,” Fifth Third Bank Regional President Tom Welch said in a statement to MiBiz.

In June 2021, Fifth Third led Kent County with $5.22 billion in deposits, or a 22.81-percent market share, to Huntington’s $4.12 billion, or a 17.99 percent. By June 30, 2022, Fifth Third’s marketing-leading position in Kent County shrank to 20.4 percent as its deposits declined to $4.85 billion. Huntington meanwhile grew its deposits to $4.44 billion for a 18.71-percent share of the market.

The year-over-year changes occurred as total bank deposits within the Grand Rapids-area MSA grew 3.9 percent to $31.4 billion as of June 30, from $30.2 billion a year earlier.

While the change in the deposit market share rankings for the Grand Rapids MSA gives Huntington bragging rights for at least a year, Davis notes that the bank’s move into the top position was by “such a minute hair” of just 0.23 percentage points above Fifth Third. 

If Huntington is to remain the market leader, “I have to keep working on it every day,” Davis said.

Huntington’s rise to the top of the Grand Rapids-area MSA for deposit market share coincides with the bank’s broader momentum across its 11-state footprint since the TCF acquisition. The corporation recently reported solid deposit, loan and earnings growth in the third quarter.

That momentum extends into West Michigan, where Huntington “continues to have strong pipelines” and “we are identifying new opportunities,” and business banking growth is up year over year, Davis said.

Across West Michigan, the Grand Rapids area offered the most notable change in the annual deposit data from the FDIC. Other markets generally saw only incremental shifts in deposit market share. One exception was Kalamazoo-based First National Bank of Michigan, which recorded one of the largest year-to-year gains in moving from an 11.97-percent share of the Kalamazoo-Portage MSA market in 2021 to 13.78 percent in 2022 with $652.8 million in local deposits.

PNC Bank remained the market leader in the Kalamazoo-Portage MSA, followed by Fifth Third, which also continues to lead in the Muskegon and Niles-Benton Harbor MSAs. Huntington still leads the Battle Creek-area market. 

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