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Deposits in Maryland's banks rose by 12 percent in the past year to $108.2 billion, the highest percentage increase in more than 15 years, according to new bank data from the Federal Deposit Insurance Corp.

In fiscal 2008, Maryland deposits nudged up by only about 2 percent from the previous year.

People are putting more money into less risky vehicles, such as certificates of deposit, rather than the stock market, said analysts and officials with the Maryland Bankers Association and American Bankers Association.

"Typically, that's what we see in times like these," said Kathleen Murphy, president and CEO of the Maryland Bankers Association. People are giving up some potential interest income for the safety and security of an FDIC-insured bank, she said.

"Americans are worried," said Bethesda banking consultant Paul Joegriner, a former executive with Chevy Chase Bank and American Partners Bank.

While economic uncertainty and a loss of confidence in the stock market are fueling the trend, so is the increase in the FDIC insurance limit from $100,000 to $250,000, Joegriner said.

Nationally, the increase in deposits was 7.6 percent, to $7.56 trillion. Some states saw a much greater percentage increase than Maryland — Maine's deposits more than doubled in the past year. Others actually experienced declines, including 3.5 percent in Delaware and 1.6 percent in Washington, D.C.

Bank of America,

M&T lead state

Bank of America of Charlotte, N.C., still remains the most popular choice for depositors in Maryland. Bank of America had $20.5 billion as of June 30, but its market share slipped slightly, to 18.9 percent from 19.2 percent a year ago.

The FDIC numbers do not include wealth management accounts, which Bank of America officials have said could make the figures misleading.

M&T Bank of Buffalo, N.Y., moved up to second place from fifth on the FDIC list with $13.5 billion, and had the most branches in the state with 255. M&T's market share increased from 7.7 percent to 12.5 percent in the past year. A key factor for the increase was the purchase of Provident Bankshares of Baltimore.

But M&T is also seeing organic growth in all deposit products, said Stephen Heine, administrative vice president and retail market manager for Greater Washington, D.C., and Virginia. The bank's strength is evidenced by its not cutting its quarterly dividends during the recession, which similar institutions have done, he said.

"We are keeping shareholders happy," Heine said. "That's an indication of how strong a bank we are. ... We think we are the strongest bank in Maryland."

M&T continues to open new branches, including six in Montgomery County in the past year. Heine said the number in the state could fluctuate some in the near future but not by much.

Capital One Financial of McLean, Va., ranked third in Maryland deposits, largely from its purchase of Chevy Chase Bank. PNC Financial Services Group of Pittsburgh slipped from second to fourth despite gaining almost $300 million in deposits in Maryland.

Sandy Spring Bank of Olney now has more deposits in the state than any other bank with headquarters in Maryland, with $2.4 billion, up from $2.2 billion a year ago.

This report originally appeared in The Business Gazette.