Why is the CCO Talking About Deposits?

12/08/22

By Amy Lou Blunt, Executive Vice President and Chief Credit Officer

OK, show of hands. How many of you remember the original Disney Mary Poppins movie? We know that Jane and Michael Banks’ father is a banker, who at times comes home weary from the work of the day. But, towards the end of the show, the bankers gather to convince Michael to deposit his “tuppence” in the bank (rather than feed the park pigeons). There is a very lively song about how deposits in the bank lead to funding for “railways through Africa”, “dams across the Nile”, and a whole litany of services and professions.

Well, on a not so international scale, that’s exactly how your deposits support your own community. Your local deposits fuel the bank’s lending platform, so that your local businesses can thrive by bridging cash cycles, adding fleets of vehicles, buying larger warehouse, office or manufacturing space to support continued growth and the ability to serve our ever-growing Valley of the Sun.

Our Metro Phoenix area has a fairly unique deposit profile, compared to other similarly sized cities. Did you know that the “big 3” banks house 62.5% of total deposits in this market? Yes, there is a convenience factor having a prolific branching footprint, but, in this day of enhanced technology, how much does that really matter? At RBAZ, we make ourselves available to you throughout the Valley, at our offices and yours, which is probably why there is such a robust pipeline of lending opportunities.

Your deposit dollars stay in Arizona and are put to work across a variety of cities, industries and not-for-profit organizations — as you can see from the “tombstones” in this newsletter highlighting six of the business loans over the past quarter.