Local upstarts grow, maintain lending power
The Tennessean, February 25, 2009
BRENTWOOD — While many large national banks are being bought out or crushed in the nationwide credit crunch, a different scenario is playing out for some locally owned financial institutions that have said "no thanks" to federal bailout money.
Brentwood-based Reliant Bank, only 3 years old, soon will open a 17,000-square-foot Franklin branch off South Royal Oaks Boulevard as well as a 4,900-square-foot branch in Green Hills.
The bank's assets went from $205 million in December 2007 to $317 million in December 2008, "a 54 percent increase year over year in a very challenging year," said Brian Shaw, executive vice president and head of retail banking for Reliant.
Franklin-based Tennessee Commerce Bank grew 30 percent last year and has the largest deposit market share in the county.
And the recession isn't scaring off new kid on the block Franklin Synergy, which has plans to open a new Columbia Avenue branch.
"I would say community banks, as a whole, are faring a little better than regional banks and significantly better than national banks," said Tim Amos, senior vice president and general counsel for the Tennessee Bankers Association. "There's no doubt that, because of their dynamics and geographic orientation, (large banks) are going to have more challenges than if you're in a local market."
Local people, local decisions
Reliant Bank President DeVan Ard attributes the bank's success in part to the fact that the company makes its decisions locally.
The bank has the third largest deposit market share in Brentwood and the eighth largest share in the county, according to the FDIC market share data.
"We empower our people to make common sense decisions," said Shaw. "We try to blend the services and conveniences of larger regional banks with the feel of a small, locally-owned hometown bank."
Franklin Synergy promotes a similar philosophy.
"We're truly a local bank," said Aimee Punessen, senior vice president for marketing, public and investor relations. "Our board is all local. Our shareholders are local. Our deposit base is local."
The bank opened a little more than a year ago with a Cool Springs branch and has $200 million in assets, $170 million in deposits and about 800 customers.
Franklin Synergy hopes to gain a larger deposit market share in the county with its Columbia Avenue branch and an upcoming Brentwood branch but has no plans to expand outside the county.
Niche opportunities
Local banks also have the opportunity to get involved in the local community or zero in on niche interests within the area, and banks here seem to relish the opportunity.
Reliant offers free Internet and printer access to customers and provides space at its Lenox Village branch for a group of seniors who meet weekly for coffee.
Shaw said Reliant has solicited feedback from customers about what they like about the bank.
"They say it feels like home," he said. "They know us, and we know them."
Punessen said Franklin Synergy has a strong emphasis on the local real estate market.
Tennessee Commerce Bank chairman and chief executive officer Art Helf pointed to his bank's business-oriented services and philosophy.
"We have somewhat of a unique footprint," he said. "Our focus is on small and midsize businesses and entrepreneurs."
But whether that personal touch gives local banks an advantage is "sometimes hard to measure," Amos said.
Amos said regional banks also offer niche products and strive to provide the same level of personal service. "It's all part of being competitive in the market."
Credit crunch helps
Most banks were clamoring for a chunk of the federal government's $700 billion bailout plan, but Tennessee Commerce Bank turned the money down.
The eight-year-old bank has grown at a rate of about 50 percent a year. That growth dropped some last year, but the bank met its goals and exceeded everyone's expectations, Helf said.
Reliant also voted not to take part in the bailout.
The economic downturn actually helped boost the bank's loan portfolio, Ard said. While other banks were pulling back, Reliant was able to continue to lend because it was well capitalized.
Franklin Synergy, too, benefited from the banking turmoil, Punessen added.
"If you have money to lend," it's a good time to start a local bank, she said.
The Tennessean, February 25, 2009
BRENTWOOD — While many large national banks are being bought out or crushed in the nationwide credit crunch, a different scenario is playing out for some locally owned financial institutions that have said "no thanks" to federal bailout money.
Brentwood-based Reliant Bank, only 3 years old, soon will open a 17,000-square-foot Franklin branch off South Royal Oaks Boulevard as well as a 4,900-square-foot branch in Green Hills.
The bank's assets went from $205 million in December 2007 to $317 million in December 2008, "a 54 percent increase year over year in a very challenging year," said Brian Shaw, executive vice president and head of retail banking for Reliant.
Franklin-based Tennessee Commerce Bank grew 30 percent last year and has the largest deposit market share in the county.
And the recession isn't scaring off new kid on the block Franklin Synergy, which has plans to open a new Columbia Avenue branch.
"I would say community banks, as a whole, are faring a little better than regional banks and significantly better than national banks," said Tim Amos, senior vice president and general counsel for the Tennessee Bankers Association. "There's no doubt that, because of their dynamics and geographic orientation, (large banks) are going to have more challenges than if you're in a local market."
Local people, local decisions
Reliant Bank President DeVan Ard attributes the bank's success in part to the fact that the company makes its decisions locally.
The bank has the third largest deposit market share in Brentwood and the eighth largest share in the county, according to the FDIC market share data.
"We empower our people to make common sense decisions," said Shaw. "We try to blend the services and conveniences of larger regional banks with the feel of a small, locally-owned hometown bank."
Franklin Synergy promotes a similar philosophy.
"We're truly a local bank," said Aimee Punessen, senior vice president for marketing, public and investor relations. "Our board is all local. Our shareholders are local. Our deposit base is local."
The bank opened a little more than a year ago with a Cool Springs branch and has $200 million in assets, $170 million in deposits and about 800 customers.
Franklin Synergy hopes to gain a larger deposit market share in the county with its Columbia Avenue branch and an upcoming Brentwood branch but has no plans to expand outside the county.
Niche opportunities
Local banks also have the opportunity to get involved in the local community or zero in on niche interests within the area, and banks here seem to relish the opportunity.
Reliant offers free Internet and printer access to customers and provides space at its Lenox Village branch for a group of seniors who meet weekly for coffee.
Shaw said Reliant has solicited feedback from customers about what they like about the bank.
"They say it feels like home," he said. "They know us, and we know them."
Punessen said Franklin Synergy has a strong emphasis on the local real estate market.
Tennessee Commerce Bank chairman and chief executive officer Art Helf pointed to his bank's business-oriented services and philosophy.
"We have somewhat of a unique footprint," he said. "Our focus is on small and midsize businesses and entrepreneurs."
But whether that personal touch gives local banks an advantage is "sometimes hard to measure," Amos said.
Amos said regional banks also offer niche products and strive to provide the same level of personal service. "It's all part of being competitive in the market."
Credit crunch helps
Most banks were clamoring for a chunk of the federal government's $700 billion bailout plan, but Tennessee Commerce Bank turned the money down.
The eight-year-old bank has grown at a rate of about 50 percent a year. That growth dropped some last year, but the bank met its goals and exceeded everyone's expectations, Helf said.
Reliant also voted not to take part in the bailout.
The economic downturn actually helped boost the bank's loan portfolio, Ard said. While other banks were pulling back, Reliant was able to continue to lend because it was well capitalized.
Franklin Synergy, too, benefited from the banking turmoil, Punessen added.
"If you have money to lend," it's a good time to start a local bank, she said.
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