New York-based NBT Bank posted the largest deposit increase in the past year in Connecticut after acquiring Salisbury Bank in August 2023, according to newly released federal data.
NBT Bank, part of publicly traded NBT Bancorp, increased its deposit base in Connecticut by nearly 955% from June 30, 2023 to June 30, 2024, according to data from the Federal Deposit Insurance Corporation.
The bank had $497 million in deposits in Connecticut at the end of June, up from $47.2 million in the same period last year. Currently, it is the 32nd largest bank in the state of Connecticut by deposit holdings.
Overall, Connecticut banks showed little growth over the past year. This was due to the continued high interest rate environment and the continued trend of customers, including online lenders and other non-traditional financial institutions, seeking the highest yields.
Deposits in Connecticut held by banks operating in the state were $167.7 billion as of June 30, an increase of less than 1% from the same period last year.
That’s still an improvement from the previous year, when banks shrunk their Connecticut deposits by about 7% from June 30, 2022 to June 30, 2023, according to FDIC data.
Bank of America remains the state’s deposit market share leader with $37.6 billion in deposits, down 5.14% from a year ago. It controls 22.4% of deposits in the state, down from 23.75% as of June 2023.
But Stamford-based Webster Bank is closing in on Bank of America’s market share lead. The intrastate deposit base increased 11.2% over the past year to $36.6 billion. It currently manages 21.8% of deposits, up from 19.7% as of June 2023.
M&T Bank ranks third in the state with a 2.75% increase in deposit-based commitments from June 30, 2023 to June 30, 2024. The loss in deposit market share narrowed compared to the previous year, when Connecticut reported a 22% decline in deposits. Following technical and other issues that arose following the acquisition of People’s United Bank for $8.3 billion in April 2021.
Meanwhile, Connecticut banks also closed a net 3.2% of their branches over the past year as they continue to focus on strengthening their online services, FDIC data show.
M&T Bank led the list with a net 22 branch closures. Currently, there are 118 chapters in the state.
After the acquisition of Salisbury Bank, NBT Bank added the most branches (4 branches). There are currently six branches in Connecticut.
