Howard Bank Jumps to No. 7

Baltimore Business Journal 09/14/18

https://www.bizjournals.com/baltimore/news/2018/09/14/bank-of-america-widensgap-as-greater-baltimores.html

Bank of America Corp. gained market share from its biggest competitors in Greater Baltimore and Howard Bank jumped into the top 10 over the last year, according to data released Friday by the Federal Deposit Insurance Corp.

Already the region's biggest bank, Bank of America saw deposits increase almost 6 percent to $21.3 billion as of June 30. The Charlotte-based bank's market share rose from 27.9 percent to 29.4 percent. With $1.4 trillion in deposits nationwide, Bank of America is the second largest bank in the U.S.

Bank of America's (NYSE: BAC) lead over M&T Bank widened to 10.2 percentage points, compared to about 6 points last year.

The rankings overall stayed pretty much the same as the prior year. The most notable change was Howard Bank's expected leap into the top 10. The bank's parent company, Howard Bancorp, closed a $163.4 million acquisition of First Mariner Bank in March.

A majority of the region's deposits remain concentrated in the six biggest banks: Bank of America, M&T Bank, PNC Bank, Wells Fargo & Co., BB&T Corp. and SunTrust Banks Inc. Those banks have a combined market share of 80.4 percent, virtually even from last year.

Here's a look at some of the things that stood out in the rankings.

  • M&T Bank lost market share - Buffalo-based M&T Bank (NYSE: MTB) remains Baltimore's second-largest bank, but it is losing deposits. The bank's deposits declined almost 11 percent from $15.6 billion to $13.9 billion. Market share fell from 21.6 percent to 19.2 percent.
  • The other big banks stayed stable - PNC (ranked No. 3), Wells Fargo (No. 4) and BB&T (No. 5) each saw slight drops in their market share. San Francisco-based Wells Fargo's market share remained stable, dipping from 9.9 percent to 9.7 percent even as the bank continues to deal with the fallout of a fake account scandal from 2016 and penalties from the federal government. SunTrust, ranked No. 6, gained market share rising from 3.17 percent to 3.96 percent.
  • Howard Bank jumps to No. 7 - The acquisition of First Mariner made Howard Bank (NASDAQ: HBMD) the largest bank headquartered in Baltimore since Mercantile Bankshares. As expected, Howard surpassed First National Bank and Capital One to move up to No. 7, trailing SunTrust.
  • Other community banks see gains - Besides Howard Bank, a number of Greater Baltimore's community banks saw slight increases in market share. Bowie-based Old Line Bank, which acquired Bay Bancorp in April, rose from No. 30 to No. 12. The bank 1.03 percent market share with $743.8 million in local deposits. Rosedale Federal Savings and Loan Association remained at No. 13 but saw its market share grow to exactly 1 percent as deposits rose 17 percent to $728 million.

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