In the scramble for people's money in fast-growing Central Florida, Bank of America Corp. and Wachovia Corp. have edged past SunTrust Banks Inc. to take the lead in deposits among the region's biggest banks.
SunTrust's two chief rivals took first and second place in total deposits for the first time in the six-county region of Orange, Osceola, Lake, Seminole, Volusia and Brevard counties, according to the latest market-share figures.
It is the first time in third place for Atlanta-based SunTrust, which had fallen to second twice during the past decade -- in 1999 and 2000 -- behind Bank of America.
SunTrust remains the leader -- by a slim margin -- in Metro Orlando. That's because Bank of America and Wachovia made their most significant advances on SunTrust in east Central Florida -- specifically, Volusia and Brevard counties.
Banking experts look closely for trends in the Federal Deposit Insurance Corp. figures, which are posted once a year. Strong deposit growth is considered crucial to a bank's vitality in lending, investing and other competitive fundamentals.
During the past decade, through acquisitions and aggressive expansion, SunTrust's two North Carolina-based rivals have chipped away at its lead in Central Florida.
Wachovia received a major boost last year from its $15 billion acquisition of Alabama-based SouthTrust Bank, which had a major presence in Central Florida. Bank of America also continued to strengthen its position in the local market. It has been the largest bank in Florida since acquiring Barnett Bank in 1997.
Deposits at Bank of America and Wachovia have expanded at double-digit percentage rates in recent years, while SunTrust's growth rate has been in single digits. Its Central Florida deposits actually decreased 1.25 percent from June 2003 to June 2004.
SunTrust was formed in 1985 from the merger of Orlando-based Sun Banks Inc. and the Trust Co. of Georgia. Its third-place ranking in Central Florida drew a nostalgic reaction from some of those close to the local industry.
"SunTrust has had such a strong history and visible presence here, it's a sad thing to see that leadership slipping away, if indeed that is what is happening," said Rod Jones, a banking lawyer and partner in the Orlando firm of Shutts & Bowen.
The bank said some of the deposits it generates in Central Florida are now reported as part of its Atlanta headquarters' as part of an initiative to improve marketing and organizational efficiencies.
Boosted by those deposits as well as its buyout of Memphis, Tenn.-based National Commerce Bank last year, SunTrust now ranks No. 1 in Georgia, according to the recent FDIC data, overtaking Wachovia there.
"The FDIC data are just a snapshot of a constantly moving process," SunTrust spokesman Hugh Suhr said in a written statement. "They are not a good measure for determining market presence, particularly among large institutions such as SunTrust."
After being at a standstill, in terms of branch growth a year ago, SunTrust has expanded aggressively in the region during the past year, adding 16 branches. The expansion paid off to some extent: SunTrust's regional deposits rose about 7 percent.
"I don't see any way this could be construed as good news for SunTrust," said James Gilkeson, a finance professor at the University of Central Florida. "While it's not really a case that the sky is falling, I do see it as a sign that they are no longer the king of the hill here."
Other experts said, however, there is not enough data available to tell how significant the latest market-share results really are. There are other measures that may be more valid to examine, said Stan Smith, a UCF finance professor and the college's SunTrust Chair of Banking professor.
One such gauge is core deposits, which are deposits belonging to a bank's most loyal customers, he said. SunTrust does better than either of its chief rivals in that category, Smith said. "By that measure, SunTrust appears to be competing quite well compared to its peer group," he said.
"The Orlando area is a very important market for Bank of America," regional President Ed Timberlake said. "We have good customer satisfaction scores there, which we think translate into more people wanting to do business with us."
Wachovia officials said they expect the trend to continue. "Wachovia has focused on high-growth markets such as Orlando," said Marshall Vermillion, the bank's regional president. "We've been very successful in growing market share and deposits through expansion, marketing and customer service."
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