Smaller banks eager to branch out

Consolidation of large rivals seen as growth opportunity

Sunday, December 03, 2006

By MARIAN ACCARDI

Times Business Writer marian.accardi@htimes.com

It's been a year of change for the financial industry in Huntsville, with two major banks announcing merger plans, expansions at other institutions, and even a new name in the market.

"The market is changing, particularly following the sale of SouthTrust to Wachovia," said Scott Latham, president and CEO of the Community Bankers Association of Alabama, which represents 130 community banks. "With the AmSouth-Regions merger, I suspect we'll see even more changes, both short term and long term."

Wachovia of Charlotte, N.C., acquired Birmingham-based SouthTrust in the fall of 2004, and Alabama's SouthTrust branches switched to the Wachovia name a year later. In May, Regions Financial and AmSouth, both based in Birmingham, announced plans to merge and recently finalized the deal. The combined bank will keep the Regions name.

ServisFirst Bank, which was launched in Birmingham in May 2005, opened temporary offices in The Village of Providence in west Huntsville in August. It moved into its downtown headquarters last month.

Why launch a new bank for Huntsville, and why now?

"The economic climate is right, particularly with the type of client we're focusing on," said Andy Kattos, the bank's Huntsville president. ServisFirst caters to commercial clients and affluent consumers. "The larger bank mergers have definitely created an opportunity for us."

"It's a good market to be in," said David Mathis, senior vice president and senior lender. This area is "the shining star of the state, and we're excited to be a part of it."

Kattos is pleased with the bank's growth locally. "We're ahead of schedule," with $77 million in assets already, he said. "We're at 75 percent of our annual goal after three months," said Hill Womble, senior vice president and sales manager.

Plans are to open branches in Madison and south Huntsville in the next few years.

Birmingham-based Superior Bancorp is ending the year with a significant development - completing its merger with Community Bancshares last month to create a $2.4 billion company that will include 57 offices from Huntsville to Tampa, Fla. The existing Community Bank locations - including offices in Huntsville, Elkmont, Falkville, Gurley, Hartselle, Meridianville and New Hope - will switch to the Superior name this month.

Superior - with one branch each in Huntsville and Madison - has opened its newest office at 1804 Four Mile Post Road and will hold a grand opening there on Thursday and Friday.

Also, land has been acquired for a Hampton Cove branch in front of the new Lowe's at U.S. 431 South and Sutton Road and for a second branch in Madison on U.S. 72 near Outback Steakhouse. "We've also optioned property in Athens," said Vernon Bice, Superior's Tennessee Valley market executive.

"We've had an excellent year," Bice said. "We continue to feel very good about the strength of this market."

Adding stability

The largest credit union in Alabama - Huntsville-based Redstone Federal Credit Union - opened its 18th location just last week on Winchester Road as it celebrated its 55th anniversary.

Ground will be broken Tuesday for another branch at Jeff Road and Alabama 53, and it probably will open by early summer, said Redstone Federal spokesman Thom Tingle.

"Our 10-year plan is to be in four states," said Gerald Toland, president and CEO of the credit union, which already has branches across North Alabama and in Fayetteville, Tenn. "With mergers and acquisitions (of other financial institutions), we see that as an opportunity," he said. "We add a lot of stability to the community."

Other changes in 2006:

Birmingham-based First American Bank, the lead bank of the Alabama National BanCorporation holding company, opened its new Huntsville office at the Big Spring Summit office building downtown. The bank built out the second and third floors and part of the fourth floor for its offices.

North Alabama Bank, which has branches on Winchester Road and in Hazel Green, opened a Providence Main location in west Huntsville in August.

Latham expects community banks to keep "expanding and looking for ways to have broader footprints and serve more folks."

"And we're seeing a good bit of startup banks," he said. So far this year, two new state-chartered banks opened, according to reports from the Alabama Banking Department, and the department approved applications for three more, including Vantage Bank of Alabama in Albertville. Latham has heard talk of more startups, including a Huntsville-based effort.

Look for another name that's new to banking in Alabama next year in Huntsville, Madison, Decatur and four other cities in the state.

RBC Centura Bank, a subsidiary of Royal Bank of Canada, plans to buy 39 AmSouth branches - four in Huntsville and one each in Madison and Decatur. A total of 52 branches in Alabama, Mississippi and Tennessee are to be sold to three purchasers.



Smaller banks eager to branch out Consolidation of large rivals seen as growth opportunity Sunday, December 03, 2006 By MARIAN ACCARDI Times Business Writer marian.accardi@htimes.com It's been a year of change for the financial industry in Huntsville, with two major banks announcing merger plans, expansions at other institutions, and even a new name in the market. "The market is changing, particularly following the sale of SouthTrust to Wachovia," said Scott Latham, president and CEO of the Community Bankers Association of Alabama, which represents 130 community banks. "With the AmSouth-Regions merger, I suspect we'll see even more changes, both short term and long term." Wachovia of Charlotte, N.C., acquired Birmingham-based SouthTrust in the fall of 2004, and Alabama's SouthTrust branches switched to the Wachovia name a year later. In May, Regions Financial and AmSouth, both based in Birmingham, announced plans to merge and recently finalized the deal. The combined bank will keep the Regions name. ServisFirst Bank, which was launched in Birmingham in May 2005, opened temporary offices in The Village of Providence in west Huntsville in August. It moved into its downtown headquarters last month. Why launch a new bank for Huntsville, and why now? "The economic climate is right, particularly with the type of client we're focusing on," said Andy Kattos, the bank's Huntsville president. ServisFirst caters to commercial clients and affluent consumers. "The larger bank mergers have definitely created an opportunity for us." "It's a good market to be in," said David Mathis, senior vice president and senior lender. This area is "the shining star of the state, and we're excited to be a part of it." Kattos is pleased with the bank's growth locally. "We're ahead of schedule," with $77 million in assets already, he said. "We're at 75 percent of our annual goal after three months," said Hill Womble, senior vice president and sales manager. Plans are to open branches in Madison and south Huntsville in the next few years. Birmingham-based Superior Bancorp is ending the year with a significant development - completing its merger with Community Bancshares last month to create a $2.4 billion company that will include 57 offices from Huntsville to Tampa, Fla. The existing Community Bank locations - including offices in Huntsville, Elkmont, Falkville, Gurley, Hartselle, Meridianville and New Hope - will switch to the Superior name this month. Superior - with one branch each in Huntsville and Madison - has opened its newest office at 1804 Four Mile Post Road and will hold a grand opening there on Thursday and Friday. Also, land has been acquired for a Hampton Cove branch in front of the new Lowe's at U.S. 431 South and Sutton Road and for a second branch in Madison on U.S. 72 near Outback Steakhouse. "We've also optioned property in Athens," said Vernon Bice, Superior's Tennessee Valley market executive. "We've had an excellent year," Bice said. "We continue to feel very good about the strength of this market." Adding stability The largest credit union in Alabama - Huntsville-based Redstone Federal Credit Union - opened its 18th location just last week on Winchester Road as it celebrated its 55th anniversary. Ground will be broken Tuesday for another branch at Jeff Road and Alabama 53, and it probably will open by early summer, said Redstone Federal spokesman Thom Tingle. "Our 10-year plan is to be in four states," said Gerald Toland, president and CEO of the credit union, which already has branches across North Alabama and in Fayetteville, Tenn. "With mergers and acquisitions (of other financial institutions), we see that as an opportunity," he said. "We add a lot of stability to the community." Other changes in 2006: Birmingham-based First American Bank, the lead bank of the Alabama National BanCorporation holding company, opened its new Huntsville office at the Big Spring Summit office building downtown. The bank built out the second and third floors and part of the fourth floor for its offices. North Alabama Bank, which has branches on Winchester Road and in Hazel Green, opened a Providence Main location in west Huntsville in August. Latham expects community banks to keep "expanding and looking for ways to have broader footprints and serve more folks." "And we're seeing a good bit of startup banks," he said. So far this year, two new state-chartered banks opened, according to reports from the Alabama Banking Department, and the department approved applications for three more, including Vantage Bank of Alabama in Albertville. Latham has heard talk of more startups, including a Huntsville-based effort. Look for another name that's new to banking in Alabama next year in Huntsville, Madison, Decatur and four other cities in the state. RBC Centura Bank, a subsidiary of Royal Bank of Canada, plans to buy 39 AmSouth branches - four in Huntsville and one each in Madison and Decatur. A total of 52 branches in Alabama, Mississippi and Tennessee are to be sold to three purchasers. © 2006 The Huntsville Times © 2006 al.com All Rights Reserved.