Atlanta's bank deposits shrink by $4 billion

SunTrust Banks’ $25.31 billion in Atlanta deposits are still good for first place in the metro area, but its account holdings fell $1.24 billion, or 5.7 percent from last year, according to FDIC data.

Hugh Suhr, a SunTrust spokesman, said the figures can be an "inexact" reflection of market presence, and that the bank is "pleased that we remain in the top position in our hometown."

Some of Atlanta-based SunTrust’s top competitors appear to be stealing market share from Atlanta’s biggest bank.

Bank of America, the third largest bank by market share, reported $1.27 billion in new deposits, up 7.8 percent to $17.53 billion.

Wells Fargo/Wachovia, remains the market’s No. 2 bank, and its holdings increased by 0.9 percent to $21.6 billion.

BB&T (up 7.8 percent) was No. 4, and Synovus Financial, which folded its network of banks under one charter, was fifth. Its holdings of $4.46 billion in deposits were down 4.2 percent from what was held previously by its Bank of North Georgia subsidiary.

Regions Bank, RBC USA Bank, United Community Bank, Fidelity Bank and State Bank & Trust Co. rounded out the top 10.

Interest rates paid for deposits are currently at record lows.

Adrian Cronje, chief investment officer with Buckhead-based Balentine, said one explanation for the shrinking deposit base is investors are looking for something with a better return.

“The bottom line is people are frustrated at interest rates at zero percent,” Cronje said. But interest rates will have to rise sometime.

“It’s a head long rush to high-yield bonds. People are chasing yield because they see the Fed keeping rates at zero for a long time.”