Mortgages turn MidFirst into Oklahoma's biggest bank: Longtime leader and No. 2, Bank of Oklahoma, holds 10.7 of deposits

MidFirst Bank has unseated longtime deposits leader Bank of Oklahoma as the state's largest bank, according to statistics released Thursday by the Federal Deposit Insurance Corp.

MidFirst, with $7.8 billion in deposits, controlled 11.5 percent of all state-based deposits on June 30, according to the FDIC's annual market share report. Tulsa-based Bank of Oklahoma held $7.2 billion in deposits, or 10.7 percent.

The change was due more to MidFirst's growth than Bank of Oklahoma's decline.

In the past decade, MidFirst has doubled its market share and much of its growth is due to out-of-state mortgage business rather than Oklahoma-based deposits.

MidFirst officials declined comment on the deposit numbers.

Dominating at home

MidFirst dominates its hometown Oklahoma City market with 28.5 percent of deposits. Bank of Oklahoma holds nearly one-fourth of deposits in Tulsa area, where MidFirst ranks 12th.

The FDIC data, issued once a year, reflect just one day -- June 30 -- in a bank's operations, and are subject to manipulation and one-time events that coincide with that time period. But the FDIC numbers remain one of the better independent sources of data for gauging the local banking market.

Competitive market

Oklahoma is among the nation's most competitive banking markets. A 2004 FDIC study found that Oklahoma had among the lowest rates of concentration in banking deposits.

Unlike states such as South Dakota, where Citibank and Wells Fargo together hold more than 80 percent of deposits, and New York, where JPMorgan Chase controls one-third of state deposits, Oklahoma deposits are widely spread.

Bank of Oklahoma has been the state's top deposit-holder for 15 years, which is as far back as FDIC records are immediately available. As recently as 2003, Bank of Oklahoma controlled 13.4 percent of all state-based deposits.

Spokesman Jesse Boudiette noted that Bank of Oklahoma was the largest commercial bank in the nation to decline federal bailout money.

"We're pleased to see that we have had strong growth in both consumer and commercial deposits in Oklahoma and throughout all of our regional markets," Boudiette said.

"Our liquidity position is strong, and we exceed federal requirements to be considered well-capitalized," he said.

Roger Beverage, president of the Oklahoma Bankers Association, said he wasn't surprised that MidFirst surpassed Bank of Oklahoma in deposits.

"MidFirst has been very aggressive," Beverage said.

MidFirst, technically a thrift, is not a member of the bankers association.

While taking the lead in deposits may be a point of pride for bankers, size is not important to consumers, Beverage said.

"What they care about is how the institution treats them as customers and whether their money is safe," he said.

"In both instances, their money is absolutely safe, and I'm confident that they get treated royally by both institutions."

The rest of the top 10 state banks includes: BancFirst; Arvest Bank; Bank of America; JPMorgan Chase; Stillwater National Bank; First United Bank & Trust; International Bank of Commerce (IBC Bank); and F&M Bank & Trust.