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The Toronto-Dominion Bank (the Bank) operates as a bank in North America. The Bank's segments include Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking. Its Canadian Personal and Commercial Banking segment offers a full range of financial products and services to approximately 15 million customers in the Bank’s personal and commercial... see more

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Toronto-Dominion Bank > TD Tops in Philly

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Post by Dibah420 on Sep 17, 2022 2:29pm

TD Tops in Philly

TD Bank dethrones Wells Fargo as Philadelphia region's largest retail bank

By Jeff Blumenthal – Reporter, Philadelphia Business Journal

Sep 16, 2022

Wells Fargo & Co. has been dethroned as the largest deposit taker in the Philadelphia region by TD Bank, according to annual FDIC data released Friday.

The data is recorded as of every June 30 and the Philadelphia Business Journal selected the five southeastern Pennsylvania counties and the three South Jersey river counties. When factoring in Delaware, TD had long had more deposits than Wells Fargo. But Delaware data is skewed by the fact that several banks, including TD, have a large amount of corporate deposits in bank-centric Wilmington.

Cherry Hill-based TD, a subsidiary of Toronto-based TD Bank Group (NYSE: TD), led the pack this year with $35.4 billion in local deposits, good enough for a 16.7% market share and an increase from $32.3 billion and 15.2% in 2021. TD’s branch count held at 117.

San Francisco-based Wells Fargo (NYSE: WFC) has long been the region’s largest deposit taker due to a series of acquisitions that led to the company’s local brand changing from CoreStates, First Union and Wachovia before becoming Wells Fargo.

As recently as 2016, Wells had more than 20% deposit market share in the Philadelphia region. Then the September 2016 fake accounts scandal, where retail employees set up millions of new accounts without customer permission to reach sales quotas, created massive financial, regulatory and reputational issues for the bank. Wells began to bleed deposits. In 2020, Wells Fargo had a $10 billion cap placed on its Paycheck Protection Program participation by federal regulators, forcing it to turn away scores of customers who scrambled to find local banks to take their loan applications.

In the Philadelphia region, Wells Fargo’s deposits have largely been flat during the pandemic years — $33.4 billion in 2020, 33.9 billion in 2021 and 33.4 billion in 2022 — even while its number of branches has declined during that same span from 172 to 160 to 149. Wells Fargo’s market share declined from 17.4% in 2020 to 15.96% in 2021 and 15.9% in 2022.

"We are pleased that our deposit market-share remains strong, and we continue to enjoy a large and stable core deposit base throughout the region," Wells Fargo said in a statement.

PNC remained third with $28.1 billion in deposits and 13.3% market share, up slightly from $27.8 billion and 13.1% last year. Its branch count fell from 119 to 112.

Bank of America was fourth with $23.9 billion in deposits and 11.25% market share, compared to $22.5 billion and 10.6% in 2021. Its branch count fell from 75 to 72.

Citizens Bank remained at No. 5 with $21.2 billion in deposits and 10% market share, compared to $19.4 billion and 9.1% in 2021. It branch count increased to 154 from 146. Both its number of deposits and branches increased over the past year due to Citizens’ acquisitions of 80 HSBC branches and Short Hill, New Jersey-based Investors Bancorp — both of which had Philadelphia-area operations.

On the heels of its parent company closing a $910 million acquisition of Bryn Mawr Bank Corp in January, WSFS Bank leaped over Santander Bank into the No. 6 spot with $9.6 billion in deposits and 4.51% market share, compared to $6 billion and 2.84% last year. Branch count only increased from 58 to 66 and Wilmington-based WSFS consolidated more than 30 locations — most of which were in Pennsylvania and New Jersey.

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Santander saw its deposits fall from $11.7 billion to $7.8 billion over the past year, causing its market share to decline from 5.5% to 3.7%, while its branch total declined from 69 to 57. The deposit decline for Santander comes a year after it experienced a major spike due to shifting corporate deposits, which could have been the case again this year, just in reverse.

Truist Bank ($5.7 billion in deposits), Univest Bank ($5 billion) and embattled Republic Bank ($4.8 billion) rounded out the top 10, and none experienced a significant change.

Chase Bank, the retail subsidiary of JPMorgan Chase & Co. (NYSE: JPM), the nation’s largest bank, cracked the $1 billion mark for local deposits just three and a half years after opening the first of what will be at least 56 branches in the Philadelphia region. Chase moved from No. 24 to No. 17 on the list with its deposits spiking from $954 million to $1.49 billion and market share increasing from 0.45% to 0.71% and its branch count jumping from 34 to 40.

Here are some initial data points for the entire region:

Local deposits declined slightly last year after increasing in recent years, despite banks focusing on cutting retail branches as more customers become familiar with online and mobile banking. Total deposits declined to $212 billion from $212.8 billion last year. Local deposits spiked by 12% last year and by 22% in 2020 — much of which was driven by an influx of Paycheck Protection Program loans and a low interest rate environment. PPP has largely been forgiven and interest rates have increased this year.
The number of retail branches in the region fell for the 14th straight year — to 1,286 from 1,360 in 2021 and 1,398 in 2020. The number has declined by 27% since 2008, when local branching peaked at 1,761 locations.
The number of banks operating in the region decreased by four — from 84 to 80. Spurred by a wave of consolidation, the total number of local banking institutions has declined by 39% since peaking at 131 in pre-recession 2008. There were 107 in 2015.
The big five banks control 67% of the region’s deposits, up from 64% last year. The 10 largest deposit takers in the region consume a combined 82% of market share, up from 79% last year.