San Antonio Banks Report Significant Growth in Deposits, Over $1 Billion Increase Since Last Year

San Antonio Banks Report Major Deposit Increases

San Antonio is buzzing with financial optimism these days, and it’s not just because of the warmth of the Texas sun! The city’s top banks have witnessed a surprising turnaround in their deposit trends, reporting a jaw-dropping increase of over $1 billion since this time last year. Isn’t that fantastic news?

Positive Changes in the Banking Landscape

According to the latest data from the Federal Deposit Insurance Corporation (FDIC), San Antonio’s ten largest banks saw deposits jump by $1.1 billion during the second quarter of the year. This rise represents an impressive nearly 8% spike compared to the previous quarter in 2023. It’s as if the city’s banks are finally shaking off the dust after years of decline.

Among the top five banks in the city, Frost Bank, Broadway Bank, Vantage Bank, Jefferson Bank, and Texas Partners Bank, a total of $1.34 billion in deposits was recorded—an uptick of 2.5%. It’s certainly refreshing to see that the financial tide is turning!

Frost Bank’s Unique Position

Interestingly, however, not all banks enjoyed the same level of growth. Frost Bank experienced a slight drop in deposits, moving from $41.1 billion in the second quarter of last year to $40.7 billion this year. Phil Green, the Chairman and CEO of Frost Bank, mentioned that a year-over-year growth has been noted on the consumer side, yet the commercial side is seeing folks utilizing their funds elsewhere. It appears that while consumers are keeping the faith, commercial sectors are facing different challenges.

Vantage Bank Shines Bright

On a brighter note, Vantage Bank has emerged as a standout performer. This North Side institution celebrated a remarkable 28% increase in deposits over the past year! They are not just seeing more deposits but also enjoying growth in accounts both below and above the FDIC-insured amount of $250,000. Now that’s what we call a winning formula!

Loans and Leases on the Rise

But it’s not just about deposits. The local financial institutions also reported a substantial increase—about $2.6 billion—in loans and leases over the past year. Interestingly enough, growth in commercial real estate loans remained flat; meanwhile, commercial and industrial loans took a minor hit of 1%. Still, some banks like Texas Partners Bank are pushing the limits and underwriting more commercial and industrial loans. 

Frost Bank has the largest share of its portfolio dedicated to commercial and industrial loans, weighing in at 31.4%. This shows a clear focus on that sector, which demonstrates the bank’s strategy amid a rollercoaster of changes this year.

Multifamily Real Estate Lending Insights

When we look at the multifamily real estate scene, it tells a different story. Many banks in San Antonio are still treading lightly in this area, with Schertz Bank & Trust taking the lead by having just shy of 20% of its loans allocated to this sector. So while some areas are thriving, the rental market is still navigating the waters cautiously.

Conclusion

San Antonio is certainly at a pivotal moment economically, especially within its banking community. Whether you’re a consumer looking to save or a business seeking funding, this recent growth in deposits might just mean more opportunities ahead! The city’s financial institutions are adapting, and the optimism is palpable. Let’s keep an eye on how these trends develop in the coming months—it looks like it’s going to be an exciting ride!