Glowing FDIC Economic Report Cites NH's Population Growth

Staff Report, The Union Leader, July 8, 2004
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The Federal Deposit Insurance Corp. says in a summer economic report that New Hampshire's robust population growth bodes well for increased economic activity in the Granite State.

New Hampshire has grown at double the New England average, the report states.

The state enjoys the sixth highest personal income per capita rate in the nation. In New England, it trails Connecticut and Massachusetts. Personal income growth moved moderately better than the New England and national average.

In a telephone press conference yesterday, FDIC Boston region manager Paul Driscoll said the state should experience good job growth, partly as a by-product of population growth, which will bring new construction jobs, and partly due to an expected uptick in the economy, including the high-tech sector.

The report from the nation's largest banking regulatory agency noted that out-of-state banks have increased their presence significantly in New Hampshire. Ten years ago, the state had 392 bank branches, three of which were owned by banks headquartered out of state, the report stated. In 2003, there were 418 branches, 180 of which were owned by out-of-state banks. Deposits in banks during that time rose from $14 billion to $30 billion, the report said.

Richard Brown, chief economist for the FDIC, said the growth of large out-of-state banks does not hurt credit availability for small businesses.

"The smallest businesses often prefer to borrow from the smallest institutions," Brown said. In fact, he said, studies have found that large bank mergers often bring an increase in business for small banks and an increase in new charters for small banks.