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Thursday, September 13, 2012

Business Banking

Where do you do your business banking? As a small business, you should consider your local community bank.

Why?

Aside from the fact that you can most likely set up a meeting with the bank president (the ultimate decision maker on things like business loans) quite easily, your local community bank is an important factor in the health and well-being of your city or town.

Let me paint a picture of banking in the United States today:

·         Currently there are 7,246 total FDIC insured banks

·         Of those, there are 37 “big boys” (more than $50-billion in assets) and 7,139 with less than $10-billion in assets.

To show how dramatic that distinction is:

·         The Top 100 Largest Banks (1.3%) hold 81% of Industry Assets (and just 6 of those banks hold 56% of Total Assets!)

·         7,146 banks hold 19% of Industry Assets

But, community banks (with 19% of the Industry Assets)
are responsible for 58% of Small Business Loans!

Think about it ... small businesses create 65% of the private sector jobs and community banks are shouldering more than their share of small business loans.  Those are the kind of folks with whom you want to do business.
The community banker offers personal service, local credit decisions and ownership, and reinvestment in the community; as a small businessperson, why would you look elsewhere?

 

FYI: here is a listing of the largest 25 banks in America

Rank
Institution Name
Location
Total Assets
1
JPMORGAN CHASE & CO.
NEW YORK, NY
$2,290,146,000
2
BANK OF AMERICA CORPORATION
CHARLOTTE, NC
$2,162,083,396
3
CITIGROUP INC.
NEW YORK, NY
$1,916,451,000
4
WELLS FARGO & COMPANY
SAN FRANCISCO, CA
$1,336,204,000
5
GOLDMAN SACHS GROUP, INC.
NEW YORK, NY
$948,981,000
6
METLIFE, INC.
NEW YORK, NY
$825,188,490
7
MORGAN STANLEY
NEW YORK, NY
$748,517,000
8
U.S. BANCORP
MINNEAPOLIS, MN
$353,136,000
9
THE BANK OF NEW YORK MELLON CORPORATION
NEW YORK, NY
$330,490,000
10
HSBC NORTH AMERICA HOLDINGS INC.
NEW YORK, NY
$317,482,381
11
THE PNC FINANCIAL SERVICES GROUP, INC
PITTSBURGH, PA
$299,712,018
12
CAPITAL ONE FINANCIAL CORPORATION
MCLEAN, VA
$296,698,168
13
TD BANK US HOLDING COMPANY
PORTLAND, ME
$207,333,395
14
STATE STREET CORPORATION
BOSTON, MA
$200,368,976
15
ALLY FINANCIAL INC.
DETROIT, MI
$178,560,000
16
BB&T CORPORATION
WINSTON-SALEM, NC
$178,529,372
17
SUNTRUST BANKS, INC.
ATLANTA, GA
$178,307,292
18
PRINCIPAL FINANCIAL GROUP, INC.
DES MOINES, IA
$152,050,658
19
AMERICAN EXPRESS COMPANY
NEW YORK, NY
$146,890,000
20
AMERIPRISE FINANCIAL, INC.
MINNEAPOLIS, MN
$135,271,252
21
RBS CITIZENS FINANCIAL GROUP, INC.
PROVIDENCE, RI
$129,313,757
22
REGIONS FINANCIAL CORPORATION
BIRMINGHAM, AL
$122,344,664
23
FIFTH THIRD BANCORP
CINCINNATI, OH
$117,542,579
24
BMO FINANCIAL CORP.
WILMINGTON, DE
$112,165,541
25
THE CHARLES SCHWAB CORPORATION
SAN FRANCISCO, CA
$111,816,000
        The Top 50 bank holding companies (BHCs) as of 06/30/2012 (based on consolidated assets)

 
Source: Federal Deposit Insurance Corporation (FDIC) 6/12
Independent Community Bankers of America (ICBA) 6/12
United States Federal Reserve  System National Information System 6/12

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