Midlands residents and businesses deposited nearly $2 billion into area banks during the past 12 months, topping a state and national banking trend.

Deposits in Midlands banks surged 19 percent, to $10.4 billion, in the year ending June 30, according to the Federal Deposit Insurance Corp. The state increase was 12 percent.

S.C. banks reported deposits totaling $53.8 billion in 2005.

Bankers say deposits are growing as the economy strengthens. As businesses and governments collect more money, they ultimately put more in banks.

Wachovia and Bank of America controlled 47 cents of every dollar deposited in Midlands banks. The two Charlotte-based institutions have scrapped for the Midlands’ top spot as they became national giants through decades of mergers.

But while Wachovia’s hold on roughly 24 percent of the Midland’s banking market remained constant from 2004, Bank of America gained ground by growing deposits by nearly 40 percent — to $2.3 billion.

Last fall Kim Wilkerson became president of Bank of America’s S.C. market, and she made coordinating the bank’s business operation a priority.

Bank of America’s different lines of banking have started sharing more information with each other, with the goal of providing better customer service and growing deposits. A year later, Bank of America has 23 percent of the Midlands’ market share.

“We have a passion for winning, and will very much stay focused on that,” Wilkerson said.

Jack Goettee, Midlands president of Wachovia, acknowledged that last year’s purchase of SouthTrust caused some flattening with Wachovia’s numbers when it was time to report to the FDIC.

A lot of money can be shifted between markets by banks operating in several states or nationwide, he said.

“Part of these FDIC numbers are a day, a snapshot,” he said.

Still, Wachovia’s deposits grew by 15 percent statewide to $10.3 billion. Wachovia still tops the state’s market, holding nearly a fifth of all deposits.

In the Midlands, Wachovia’s deposits grew by 21 percent, to $2.5 billion.

BB&T, the third megabank with a large stake in the Midlands, lost market share at both the statewide level and in Columbia. Winston-Salem, N.C.-based BB&T slipped to fourth, being surpassed by Columbia-based National Bank of South Carolina.

Chuck Garnett, president of NBSC, said a focus on corporate services helped the bank increase Columbia deposits to $1.4 billion — a 31 percent jump from 2004.

Also notable is a pair of community banks — both pinning their futures on Lexington County’s red-hot growth — that broke into the top 20 list of banks based on statewide deposits:

• First Reliance of Florence popped into the top 20 statewide after it opened a branch in Lexington.

• First Community of Lexington grew by following the national trend of buying a bank.

In 2005, the 11-branch community bank completed its $46 million purchase of DutchFork Bancshares, the holding company of Newberry Federal. That deal has become a catalyst for growth, because the deal doubled First Community’s assets to more than $450 million.

Nationally, the FDIC reports a healthy merger-and-acquisition market among banks has fueled the growth in deposits.

Since June 2004, bank acquisitions led to the changing of hands of $1 trillion in assets and $600 million in deposits.

Looking ahead to 2006, Goettee said South Carolina’s banks should again see strong deposit growth.

There are areas of concern, such as what rising interest rates will do to the loan side of business, and what higher oil prices will do to spending. But overall, he said, clients of state banks will continue putting money in their accounts.

“We all have nice positions, nice client bases with governments,” Goettee said. “We’re bullish on ‘06.”