Before the CT conversion, M&T customer deposits had fallen by $4 billion

Prior to its switch of People’s United accounts that drew complaints and scrutiny, M&T Bank saw Connecticut deposits fall at more People’s United Bank branches than where M&T recorded gains.

The Federal Deposit Insurance Corp. counts bank deposits each year based on June totals. In its latest report, the FDIC reported a $4.2 billion decline in M&T filings in Connecticut compared to the combined total of M&T and People’s United in June 2021.

This allowed Webster Bank to overtake M&T to become Connecticut’s second largest bank by customer deposits, after Bank of America. The FDIC awards Bank of America 25 cents on every dollar deposited in Connecticut, for a total of $44.7 billion, Stamford-based Webster at $25.9 billion in customer deposits in June and M&T having $24.8 billion.

The vast majority of banks in the New York and Connecticut markets have seen deposit gains over the past year – in Connecticut, neither has JPMorgan Chase which added $1.4 billion to its total state to push it slightly above the $10 billion threshold for a 16% gain. .

Across all banks, customers transferred nearly $580 million to their aggregate accounts in Connecticut to bring the total to a record $179 billion — about $39 billion above June 2019 before the pandemic. COVID-19.

M&T acquired People’s United last April, picking up $53 billion in deposits from customers in Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine. In June, however, M&T’s total deposits were down $9.6 billion year-over-year from the combined total it and People’s United reported separately in June 2021. The decline was led by branches of New York and Connecticut, with the possibility that some customers may have moved accounts before the April acquisition date.

Deposit levels can be heavily influenced by businesses and municipalities changing banks, or by branch closures that prompt banks to reallocate accounts to another location for geographic or accounting purposes.

This appears to have been the case with a huge portion of People’s United filings registered with the FDIC. M&T estimated a drop of $3.9 billion in deposits at the People’s United headquarters branch in downtown Bridgeport, reducing the total to $3.1 billion in June.

However, at five other retail branches in Bridgeport, M&T saw a 4% increase in combined deposits, suggesting that customers in People’s United’s hometown remained loyal to their new bank in the first months following the acquisition.

However, in about 90 Connecticut municipalities where M&T had branches in June, the company reported that deposits fell in 63% of those cities and towns.

Former People’s United customers continue to protest their account conversions and gained a major new ally on Friday morning. U.S. Senator Richard Blumenthal, D-Conn., has asked M&T to compensate all customers whose automated bill payments were rejected or who otherwise had difficulty accessing their accounts.

Blumenthal has called for an investigation by the US Bureau of Consumer Financial Protection and the Federal Reserve into M&T’s preparations for the switch, alongside senators from Massachusetts and Vermont.

Attorney General William Tong had announced his own request a few days earlier.

Includes earlier reports by Paul Schott and Luther Turmelle.

[email protected]; @casoulman

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