The value of bank deposits in Oregon has begun to see real, sustained post-Recession growth in recent years, but Oregon-chartered banks aren’t receiving the benefits in quite the same way.
The value of deposits with banks operating in Oregon but headquartered elsewhere increased by $4 billion in just the last year. At the same time, deposits with Oregon-chartered banks failed to eke out even a $1 billion increase.
That’s likely due to the fact that there just aren’t as many Oregon-based banks left to take deposits thanks to a myriad of bank failures and acquisitions since the Great Recession.
The number of banks chartered in Oregon has decreased by more than 40 percent in the past two decades. Meanwhile, in a state that has historically fostered the creation of new banks, there’s been a dearth of bank startups since 2008.
The outsized burden of regulation on smaller, community banks has played a role in the consolidation, meaning that tax reform may help abate that trend.
“I believe the pace of local merger and acquisition activity is likely to slow,” said Hadley Robbins, CEO of Tacoma, Wash.-based Columbia Bank, which last year acquired Eugene-based Pacific Continental Bank. “A significant amount of merger and acquisition activity has already occurred, and the local population of banks is smaller. Those that remain have unique market positions and loyal customers.”
The charts below illustrate how the Oregon banking landscape has changed: there are fewer Oregon banks with less market share, resulting in fewer branches, an area that has also fell victim to advances in technology. Oregon banks’ loan portfolios have also evolved in the last decade. Unsurprisingly, given the amount of development in Portland and elsewhere in the state, loans for commercial real estate and multifamily residential development now make up a much greater share of banks’ loan portfolios.
Largest FDIC-Insured Banks in the Portland Metro Area
Ranked by Portland metro-area deposits as of June 30, 2017
Rank Name Portland metro-area deposits as of June 30, 2017 1 U.S. Bank $10.46 billion 2 Bank of America $9.53 billion 3 Wells Fargo $8.82 billion View This List