3246

We have recently received 2005 demographic estimatesand 2010 demographic projections, based upon thelatest Census Bureau data and data compiled byBancography’s demographic suppliers. You’ll find thisinformation incorporated in the latest release of ourBancography Plan software tool and in various otherBancography research projects.

We’ve devoted much of this issue of Bancology toexploring the findings from the new demographic releases.The maps in this article read like a newspaper weathermap, with red indicating higher values, graduatingdown the color spectrum to blue indicating lower values. Apologies to our colleagues and clients in Alaska andHawaii; our mapping software can’t render these statesand keep the ‘other 48’ readable. But visit our web site(www.bancography.com/bancology.html) for maps anddata from all 50 states.

Among the major nationwide trends:

✤ Sunbelt growth continues

Arizona, Texas, and California continue to show highprojected household growth throughout their mostpopulous regions, and growth also remains strong in thePacific Northwest, Colorado, and parts of Nevada. Eastof the Mississippi, growth projections are high in Florida,

but beyond Florida only isolated metros such as Atlantaand Washington show growth projections comparable tothe western states.

Suburban counties of major metros boast the highest growthrates, and over 82% of American households now live incounties classified as part of metropolitan areas. The tablebelow shows the 10 counties with the highest five yearprojected household growth rates. Only counties with atleast 50,000 households in 2005 are included. Visit our website (www.bancography.com/bancology.html) to view a tableof the top 25 counties.

Rank/County MSA Five Year HouseholdGrowth

1 Loudoun, VA Washington, DC 35.4%2 Henry, GA Atlanta, GA 31.8%3 Douglas, CO Denver, CO 30.9%4 Delaware, OH Columbus, OH 27.6%5 Collin, TX Dallas, TX 27.2%6 Williamson, TX Austin, TX 26.5%7 Fort Bend, TX Houston, TX 25.8%8 Osceola, FL Orlando, FL 25.6%9 Hamilton, IN Indianapolis, IN 25.4%

10 Placer, CA Sacramento, CA 24.8%

✤ Income concentratedon the coasts

The northeast corridor,from Washington throughto Baltimore, Philadelphia,New York, and Boston,ranks as America’s primarywealth concentration.Numerous counties in thelarge metros along thecorridor boast medianhousehold incomes rankingin the top 20% of all UScounties. The west coastalso shows high wealthconcentration in its urbancenters of Seattle, Portland,San Francisco, andLos Angeles.

Bancography has released the second edition of its syndicatedresearch study, Marketing Research Benchmarks andToolkit. This comprehensive study has everything an institutionneeds to execute a marketing research project. Sample surveysready for immediate implementation and free industry researchresources are also included. The price of this study is $760 forclients and $950 for non-clients. For more information, visit theSyndicated section of our web site or contact Kimberly Clay at(205) 251-6227 or kimberly@bancography.com.

Bancography will exhibit at BAI's Retail Delivery Conference& Expo November 15 - 18 in Orlando. Our booth number is1879. For more information, visit www.bai.org/retaildelivery.

The latest version of our Bancography Plan software is nowavailable. This release contains the most current demographicsalong with mapping and other enhancements. BancographyPlan provides demographic, competitive, and financialinformation to support new branch evaluations and allowsinstitutions to produce complete pro forma financial projectionsfor any proposed branch location. For more information, visitour web site or call (205) 252-6671.

Bancography exhibited and presented at the American BankersAssociation Marketing Conference September 7 - 9 in Miami.In the Branch Development session, Steven explored thefundamentals of branch planning. In the Marketing Researchsession, Kimberly demonstrated how to design and executeresearch projects and shared case studies.

www.bancography.com September 2005VO

L.16

Bancography News

Demographics Update: The Evolving American Landscape

continued on page 2

Case Study: Poor Service Quality Fuels Attrition Rate

High income concentrations are also found in midwesternhubs such as Chicago, Minneapolis, and Detroit, and ingrowth markets scattered across the country such as Atlanta,Dallas, Denver, and Salt Lake City.

The table below shows the 10 counties with the highestmedian household income. Only counties with at least50,000 households in 2005 are included. As with thegrowth markets, most of the highest income countiesare suburban. Visit our web site to view a table of the top25 counties (www.bancography.com/bancology.html).

Rank/County MSA Median HouseholdIncome

1 Douglas, Co Denver, CO 87,9842 Loudoun, VA Washington, DC 85,3013 Fairfax, VA Washington, DC 85,2074 Morris, NJ New York, NY 83,2625 Somerset, NJ New York, NY 82,7316 Howard, MD Baltimore, MD 79,4817 Hamilton, IN Indianapolis, IN 77,4988 Nassau, NY New York, NY 76,6079 Marin, CA San Francisco, CA 76,197

10 Santa Clara, CA San Jose, CA 76,122

✤ Florida: Still America’s retirement capital

Twelve US counties feature a median age (head ofhousehold) of greater than 60, and seven of thesecounties are in Florida. Population also tends older in abelt through the rural communities of the Plains states,and in the certain Sun Belt communities in Arizona andNevada. The aging of the Plains communities reflects anexodus of younger households from those areas – notethat the higher age areas in this region also rank amongthe nation’s slowest growing counties.

Seventeen US counties show a median age (head ofhousehold) of under 40, and all are home to either

colleges or military installations that dominate theircommunities. The list of youngest markets includesCollege Station, TX; Lawrence, KS; Pullman, WA;Blacksburg, VA; Fort Stewart, GA; and Fort Hood, TX.

✤ Minority populations surge

The United States is enjoying a level of immigrationunseen since the early 1900’s, and this surge has fueledfast growth in the nation’s minority population. Since2000, America’s Hispanic population has grown at a5% compound annual rate, and the segment is projectedto grow at a similar pace over the next five years. TheAsian population segment is experiencing similar highgrowth, while the growth rate for black households,though somewhat lower, continues to outpace that ofwhite households.

The changing racial composition of the nation revealsa need for corresponding changes in bank marketing,advertising, and hiring efforts. Institutions that caneffectively deliver banking capabilities in oftenunderserved minority communities will enjoy significantbenefits as minority segments continue to add households,expand their entrepreneurial base, and accrue wealth.

To all of our friends, clients, and colleagues along theGulf Coast, best wishes as you undertake the challengingrebuilding effort from hurricanes Katrina and Rita.America’s financial institutions have always been atthe forefront of development efforts and philanthropicinitiatives in their communities. In this unprecedentedsituation, the Gulf Coast banks are already leading in bothareas. We’re proud to work with so many institutions thathave aided the recovery by providing liquidity, relaxedrepayment schedules, emergency cash disbursements evenbefore power was restored, and community leadership.

To all the bankers in less affected areas, please support yourGulf Coast colleagues with donations to your favorite localphilanthropies. Many banks in the affected areas have

established relief funds for employees displaced fromtheir homes. So if you’ve met a banker from Louisiana,Mississippi, or Texas at an ABA school, at the RDSconference, or at a vendor training class, give a call andsee if your colleague’s institution has such a fund. Or askif you can contribute supplies or manpower. And if yoursystems can support it, consider waiving foreign ATM feesand new account minimum balances for customers fromthe affected areas. Our industry enjoys tremendous respectfor the generosity, heart, and leadership we provide in ourcommunities. Now is a vital time to demonstrate thecommitment that earned that reputation.

Bancography recently conducted a primary marketingresearch study measuring household attrition across theretail and business lines for a large community bank. If a contact name was not available for thebusiness, interviewers screened for theperson responsible for the bankingrelationship. Once the primary reason forthe account was determined, the interviewerinquired if the account was relocatedelsewhere. Ninety percent respondedaffirmatively. This percentage isconsistent with other primary researchconducted by Bancography.

The next question asked the respondent ifhe possessed personal accounts with theoriginal institution; 70 percent did. Ofthose businesses that maintained retailaccounts, half of them closed and movedthose personal accounts as well. Due to thebreadth of holdings that can be lost,business retention is very important.

The most detrimental catalyst fuelingattrition in this case study and most othersmeasured by Bancography was inadequateservice quality. For this particular largecommunity bank, half of the lost businessrespondents conveyed that they would

consider using the bank again in the future. When thedata was filtered for those who moved their relationshipdue to poor service quality, only 13 percent replied thatthey would consider utilizing the bank again.

After the storm; bankers, lead the wayDemographics Update: The Evolving American Landscapecontinued from page 1

Case Study: Poor Service Quality Fuels Attrition Rate

High income concentrations are also found in midwesternhubs such as Chicago, Minneapolis, and Detroit, and ingrowth markets scattered across the country such as Atlanta,Dallas, Denver, and Salt Lake City.

The table below shows the 10 counties with the highestmedian household income. Only counties with at least50,000 households in 2005 are included. As with thegrowth markets, most of the highest income countiesare suburban. Visit our web site to view a table of the top25 counties (www.bancography.com/bancology.html).

Rank/County MSA Median HouseholdIncome

1 Douglas, Co Denver, CO 87,9842 Loudoun, VA Washington, DC 85,3013 Fairfax, VA Washington, DC 85,2074 Morris, NJ New York, NY 83,2625 Somerset, NJ New York, NY 82,7316 Howard, MD Baltimore, MD 79,4817 Hamilton, IN Indianapolis, IN 77,4988 Nassau, NY New York, NY 76,6079 Marin, CA San Francisco, CA 76,197

10 Santa Clara, CA San Jose, CA 76,122

✤ Florida: Still America’s retirement capital

Twelve US counties feature a median age (head ofhousehold) of greater than 60, and seven of thesecounties are in Florida. Population also tends older in abelt through the rural communities of the Plains states,and in the certain Sun Belt communities in Arizona andNevada. The aging of the Plains communities reflects anexodus of younger households from those areas – notethat the higher age areas in this region also rank amongthe nation’s slowest growing counties.

Seventeen US counties show a median age (head ofhousehold) of under 40, and all are home to either

colleges or military installations that dominate theircommunities. The list of youngest markets includesCollege Station, TX; Lawrence, KS; Pullman, WA;Blacksburg, VA; Fort Stewart, GA; and Fort Hood, TX.

✤ Minority populations surge

The United States is enjoying a level of immigrationunseen since the early 1900’s, and this surge has fueledfast growth in the nation’s minority population. Since2000, America’s Hispanic population has grown at a5% compound annual rate, and the segment is projectedto grow at a similar pace over the next five years. TheAsian population segment is experiencing similar highgrowth, while the growth rate for black households,though somewhat lower, continues to outpace that ofwhite households.

The changing racial composition of the nation revealsa need for corresponding changes in bank marketing,advertising, and hiring efforts. Institutions that caneffectively deliver banking capabilities in oftenunderserved minority communities will enjoy significantbenefits as minority segments continue to add households,expand their entrepreneurial base, and accrue wealth.

To all of our friends, clients, and colleagues along theGulf Coast, best wishes as you undertake the challengingrebuilding effort from hurricanes Katrina and Rita.America’s financial institutions have always been atthe forefront of development efforts and philanthropicinitiatives in their communities. In this unprecedentedsituation, the Gulf Coast banks are already leading in bothareas. We’re proud to work with so many institutions thathave aided the recovery by providing liquidity, relaxedrepayment schedules, emergency cash disbursements evenbefore power was restored, and community leadership.

To all the bankers in less affected areas, please support yourGulf Coast colleagues with donations to your favorite localphilanthropies. Many banks in the affected areas have

established relief funds for employees displaced fromtheir homes. So if you’ve met a banker from Louisiana,Mississippi, or Texas at an ABA school, at the RDSconference, or at a vendor training class, give a call andsee if your colleague’s institution has such a fund. Or askif you can contribute supplies or manpower. And if yoursystems can support it, consider waiving foreign ATM feesand new account minimum balances for customers fromthe affected areas. Our industry enjoys tremendous respectfor the generosity, heart, and leadership we provide in ourcommunities. Now is a vital time to demonstrate thecommitment that earned that reputation.

Bancography recently conducted a primary marketingresearch study measuring household attrition across theretail and business lines for a large community bank. If a contact name was not available for thebusiness, interviewers screened for theperson responsible for the bankingrelationship. Once the primary reason forthe account was determined, the interviewerinquired if the account was relocatedelsewhere. Ninety percent respondedaffirmatively. This percentage isconsistent with other primary researchconducted by Bancography.

The next question asked the respondent ifhe possessed personal accounts with theoriginal institution; 70 percent did. Ofthose businesses that maintained retailaccounts, half of them closed and movedthose personal accounts as well. Due to thebreadth of holdings that can be lost,business retention is very important.

The most detrimental catalyst fuelingattrition in this case study and most othersmeasured by Bancography was inadequateservice quality. For this particular largecommunity bank, half of the lost businessrespondents conveyed that they would

consider using the bank again in the future. When thedata was filtered for those who moved their relationshipdue to poor service quality, only 13 percent replied thatthey would consider utilizing the bank again.

After the storm; bankers, lead the wayDemographics Update: The Evolving American Landscapecontinued from page 1

3246

We have recently received 2005 demographic estimatesand 2010 demographic projections, based upon thelatest Census Bureau data and data compiled byBancography’s demographic suppliers. You’ll find thisinformation incorporated in the latest release of ourBancography Plan software tool and in various otherBancography research projects.

We’ve devoted much of this issue of Bancology toexploring the findings from the new demographic releases.The maps in this article read like a newspaper weathermap, with red indicating higher values, graduatingdown the color spectrum to blue indicating lower values. Apologies to our colleagues and clients in Alaska andHawaii; our mapping software can’t render these statesand keep the ‘other 48’ readable. But visit our web site(www.bancography.com/bancology.html) for maps anddata from all 50 states.

Among the major nationwide trends:

✤ Sunbelt growth continues

Arizona, Texas, and California continue to show highprojected household growth throughout their mostpopulous regions, and growth also remains strong in thePacific Northwest, Colorado, and parts of Nevada. Eastof the Mississippi, growth projections are high in Florida,

but beyond Florida only isolated metros such as Atlantaand Washington show growth projections comparable tothe western states.

Suburban counties of major metros boast the highest growthrates, and over 82% of American households now live incounties classified as part of metropolitan areas. The tablebelow shows the 10 counties with the highest five yearprojected household growth rates. Only counties with atleast 50,000 households in 2005 are included. Visit our website (www.bancography.com/bancology.html) to view a tableof the top 25 counties.

Rank/County MSA Five Year HouseholdGrowth

1 Loudoun, VA Washington, DC 35.4%2 Henry, GA Atlanta, GA 31.8%3 Douglas, CO Denver, CO 30.9%4 Delaware, OH Columbus, OH 27.6%5 Collin, TX Dallas, TX 27.2%6 Williamson, TX Austin, TX 26.5%7 Fort Bend, TX Houston, TX 25.8%8 Osceola, FL Orlando, FL 25.6%9 Hamilton, IN Indianapolis, IN 25.4%

10 Placer, CA Sacramento, CA 24.8%

✤ Income concentratedon the coasts

The northeast corridor,from Washington throughto Baltimore, Philadelphia,New York, and Boston,ranks as America’s primarywealth concentration.Numerous counties in thelarge metros along thecorridor boast medianhousehold incomes rankingin the top 20% of all UScounties. The west coastalso shows high wealthconcentration in its urbancenters of Seattle, Portland,San Francisco, andLos Angeles.

Bancography has released the second edition of its syndicatedresearch study, Marketing Research Benchmarks andToolkit. This comprehensive study has everything an institutionneeds to execute a marketing research project. Sample surveysready for immediate implementation and free industry researchresources are also included. The price of this study is $760 forclients and $950 for non-clients. For more information, visit theSyndicated section of our web site or contact Kimberly Clay at(205) 251-6227 or kimberly@bancography.com.

Bancography will exhibit at BAI's Retail Delivery Conference& Expo November 15 - 18 in Orlando. Our booth number is1879. For more information, visit www.bai.org/retaildelivery.

The latest version of our Bancography Plan software is nowavailable. This release contains the most current demographicsalong with mapping and other enhancements. BancographyPlan provides demographic, competitive, and financialinformation to support new branch evaluations and allowsinstitutions to produce complete pro forma financial projectionsfor any proposed branch location. For more information, visitour web site or call (205) 252-6671.

Bancography exhibited and presented at the American BankersAssociation Marketing Conference September 7 - 9 in Miami.In the Branch Development session, Steven explored thefundamentals of branch planning. In the Marketing Researchsession, Kimberly demonstrated how to design and executeresearch projects and shared case studies.

www.bancography.com September 2005

VOL.

16

Bancography News

Demographics Update: The Evolving American Landscape

continued on page 2