U.S. Bank Grabs Market Share In Minnesota [Star Tribune, Minneapolis]

<p><chron>Oct. 05</chron>--<org value="NYSE:USB" idsrc="xmltag.org">U.S. Bancorp</org> has been snatching market share in <location value="LS/us.mn" idsrc="xmltag.org">Minnesota</location> as it closes the local gap with banking giant <org value="NYSE:WFC" idsrc="xmltag.org">Wells Fargo & Co.</org>, according to a report out Tuesday from the <org value="ACORN:2975513548" idsrc="xmltag.org">Federal Deposit Insurance Corp.</org></p><p>The state's top two banks saw substantial growth in their <location value="LS/us.mn" idsrc="xmltag.org">Minnesota</location> deposits over the year, but <location value="LU/us.mn.minnea" idsrc="xmltag.org">Minneapolis</location>-based <org>U.S. Bank</org> surged ahead in its share of the market.</p><p>It boosted its <location value="LS/us.mn" idsrc="xmltag.org">Minnesota</location> deposits by about <money>$10 billion</money> and pushed its local market share to 25 percent, up from about 21 percent a year earlier.</p><p>By comparison, <org value="NYSE:WFC" idsrc="xmltag.org">Wells Fargo's</org><location value="LS/us.mn" idsrc="xmltag.org">Minnesota</location> deposits grew by about <money>$6 billion</money>, but its market share remained flat at 30.6 percent, compared with 30.7 a year earlier.</p><p>The <org>FDIC's</org> annual deposit market share report offers a snapshot of deposits as of June of each year.</p><p><org value="ACORN:4200646301" idsrc="xmltag.org">TCF National Bank</org> held the No. 3 spot with market share of 3.2 percent, down slightly from last year.</p><p>The No. 4 spot belonged to newcomer <org>Ameriprise Bank</org>, which <location value="LU/us.mn.minnea" idsrc="xmltag.org">Minneapolis</location>-based <org value="NYSE:AMP" idsrc="xmltag.org">Ameriprise Financial Inc.</org> founded in 2006. Due to a change in the way <org>FDIC</org>-insured thrifts report deposits, <org value="NYSE:AMP" idsrc="xmltag.org">Ameriprise Financial's</org><org>Ameriprise Bank</org> was included in the <org>FDIC</org> deposit survey for the first time.</p><p>The bank reported total deposits of about <money>$4.4 billion</money>, making it No. 4 with market share of 2.9 percent. It reported no deposits outside <location value="LS/us.mn" idsrc="xmltag.org">Minnesota</location>.</p><p>The bank isn't a traditional bricks-and-mortar bank but is used mostly by <org value="NYSE:AMP" idsrc="xmltag.org">Ameriprise Financial's</org> financial planning clients, a spokeswoman said.</p><p><org>U.S. Bank</org> has seen strong growth in both retail and wholesale deposits as customers, wary of the economy, sock away their money. The bank's wholesale deposits, which include deposits by companies as well as public entities, rose 14 percent nationally in the second quarter.</p><p>But <person>Christine Hobrough</person>, a <org>U.S. Bank</org> senior vice president, said she thinks the growth is also due to the bank's big emphasis on reaching out to small businesses. In an unconventional move, it has trained branch managers to spend two days a week calling on customers and new business prospects.</p><p>"We're getting the business," Hobrough said.</p><p><person>Jennifer Bjorhus</person> --612-673-4683</p><p class="shirttail">___</p><p class="shirttail">(c)2011 the Star Tribune (Minneapolis)</p><p class="shirttail">Visit the Star Tribune (Minneapolis) at www.startribune.com</p><p class="shirttail">Distributed by MCT Information Services</p>