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M&T solidifies lead in market share

M&T Bank remains dominant in deposit market share among the Buffalo Niagara region’s banks.

The Buffalo-based bank had 50.8 percent of the Buffalo Niagara market as of June 30, according to Federal Deposit Insurance Corp. data. Another Buffalo-based bank, First Niagara Financial Group, was second, with 25.9 percent.

Each year, the FDIC provides a one-day snapshot of deposit data for lenders. M&T and First Niagara combined accounted for nearly 77 percent of the Buffalo Niagara market’s share.

M&T’s share increased less than 1 percent from last year’s rankings. Its numbers were likely boosted by the Erie County Comptroller’s Office decision last year to designate M&T as exclusive provider of the county’s banking services.

On the retail side, the bank has focused on working on persuading customers to bring their checking accounts to M&T Bank, given how frequently customers use those accounts, said James Jarosz, Western New York market manager for M&T, which encompasses more than 100 branches in the Buffalo, Rochester and Southern Tier areas.

“We really focus on talking to our customers and working to get that part of the relationship over,” Jarosz said. “Then through trust and relationship, we hopefully work on cross-selling and having the customers bring over the other services that they might need from the bank,” Jarosz said.

Jarosz mentioned the example of a customer who was new to town who asked an M&T branch manager to recommend a dentist and a doctor. “It’s all about building trust with the customer and providing good service and support to them,” he said.

First Niagara’s market share declined less than 1 percent from a year ago, although its deposit total increased, since the overall deposits in the market increased.

“We believe the latest deposit market share data affirms the increasing strength of First Niagara’s market presence in the communities we serve, the loyalty we’ve earned from our customers, and the hard work of all our First Niagara team members,” said Jodi Johnston, a First Niagara spokeswoman. Deposits for all of its four-state territory increased 3.6 percent from a year ago.

KeyBank was No. 3 in the Buffalo Niagara market, with 8.9 percent market share, down from 9.7 percent a year ago, even though its deposit total increased slightly.

Bank of America moved past Citizens Bank for fourth on the list, at 5 percent. Citizens’ share shrank less than 1 percent.

Overall, 16 banks with locations in the region reported $39 billion in deposits, up about 10 percent from a year ago. Of that $39 billion, M&T had about $20.2 billion. The 16 banks’ combined number of offices fell 3.3 percent to 282 – not surprising, given the trend toward consolidating branches. KeyBank had 10 fewer offices than a year ago.

The figures the locally based banks report in the FDIC data for their headquarters branches can bulk up their respective numbers. Banks often hold deposits from large corporate or institutional customers in their central offices.

The new FDIC figures come against the backdrop of revelations that First Niagara hired JPMorgan Chase to explore the possibility of putting itself up for sale. If the bank were to be sold, a significant share of the region’s deposits would be reallocated. Something similar happened a few years ago: in 2011, HSBC had 19.6 percent market share – ranking second highest – before selling off its upstate branch network.

While 16 banks compete for deposits here, only six of them had a share of more than 1 percent.

email: mglynn@buffnews.com