The largest Orange County-based banks and thrifts saw a 7% gain in deposits in the third quarter, with overall lending and employment flat.
Deposits at the 11 largest banks and thrifts grew to $17.1 billion in the third quarter, according to market tracker Carpenter & Co. Deposits were up 6% in the second quarter.
Assets at the top OC financial institutions,four thrifts and seven commercial banks,grew less than 1% in the period to $25.1 billion. Assets include cash, loans, real estate and securities held by a bank or thrift.
Irvine’s South Coast Bancorp, which was the 12th-biggest bank in the second quarter, fell off the ranking after being acquired by Camarillo-based First California Bank. South Coast counted about $150 million in assets, in the third quarter.
Banks and thrifts are boosting rates on certificates of deposit in their battle to lure accounts. Banks use deposits to fuel lending.
The Federal Reserve’s upping of short-term interest rates 12 times since June 2004 has provided ammunition for the banks and thrifts to raise rates on CDs and loans.
“With our strong loan growth, we need to grow our deposits,” said Jon Shigematsu, chief financial officer of Fullerton Community Bank, which is the fifth-biggest bank or thrift by assets.
Fullerton Community offers an 11-month CD at 4.25%, with a minimum $10,000 investment. The average one-year CD is 4%, according to a recent check at Bankrate.com.
Fullerton Community saw its deposits grow 11% to $423 million during the past quarter. Total loans outstanding grew 3.2% to $462 million during the period. The thrift said it’s seeing strong growth in the apartment and small business lending areas.
See the Dec. 5 issue of the Business Journal for more on this story.
