Jump to content

The Banking Industry in the Triad


cityboi

Recommended Posts

Winston-Salem group plans new bank

Paul Davis

The Business Journal

A group in Winston-Salem is planning a bank in the Triad that would be the first to originate in the region since 2000.

Simpson "Skip" Brown, a former Wake Forest University basketball player and executive at Bank of America, is planning Triad First Community Bank in Winston-Salem, said Ron Wellman, the athletics director at Wake Forest.

Wellman said he is one the initial investors in the startup bank, which has raised around $6 million privately as it looks to capitalize the venture with a total of $12 million.

Wellman said Brown would serve as president and CEO of the bank, which hopes to file an application with the NC Banking Commission in the next two months.

Brown was not immediately available for comment.

Triad First would be the first new Triad-based bank since SterlingSouth Bank and Trust in Greensboro and Bank of Oak Ridge opened in Guilford County in 2000.

In 2000, a group in High Point proposed Founders National Bank, but eventually dropped plans for the bank after citing "irreconcilable differences" with federal regulators.

Southern Community Bank and Trust was the last bank to originate in Winston-Salem, opening in 1996.

Link to comment
Share on other sites


  • Replies 131
  • Created
  • Last Reply

Southern Community has been such a great success story in the Triad and Northwest NC! They are now expanding into other markets in the state and gained a lot of talented employees after the Wachovia merger, who are pushing them forward. I guess it's encouraging others. This new bank will be headquartered at Five Points and will have some very experienced banking leaders from Charlotte based Bank of America and a former NC banking commissioner running the show. It should be intresting to follow. I've heard Southern Community was intresting in buying SterlingSouth. What's the latest on that possible deal?

Link to comment
Share on other sites

I do know SterlingSouth is under pressure to sell. I don't think they are advertising it, but it's on the market. They at least want to see what kind offers they might get, even if they don't sell. Too bad they let Cashwell go! Now that was a true banking name! :lol:

Link to comment
Share on other sites

Matthew, you were right that SterlingSouth could get bought. It appears that it may be a Birmingham bank that could by it and may buy small banks in Winston-Salem. I think its hard for banks to stay headqaurted in communities because they are always take over targets. These small banks never really have a chance to grow to become a major bank. Greensboro will still have FNB bank headqaurters though.

Meanwhile this article list policy changes that could make BB&T a take over target.

Policy changes could make BB&T takeover target

Paul Davis

The Business Journal Serving the Greater Triad Area

BB&T Corp. is looking to enact a series of policy changes designed to help boost its lagging stock price, but its plan could also make the Twin City-based bank a more attractive takeover target, say some analysts and academics.

BB&T already has killed its so-called shareholder-rights plan, designed to ward off hostile takeovers, and has asked shareholders to approve changes to the company's bylaws that, among other things, would require directors be re-elected every year. Decisions on that measure and others will take place at the company's April 27 shareholders' meeting.

Bank executives say the changes are designed to respond to corporate-governance issues raised by the Sarbanes-Oxley Act and watched closely by the Securities and Exchange Commission, and that the proposals are in line with an overall trend of corporate entities looking to improve shareholder relations.

But several analysts say the changes are also part of steps BB&T is taking to regain shareholder confidence following a three-year period where the bank's stock has increased by just 2 percent, compared with more than 20 percent growth for a self-selected group of peer banks over the same time.

The goal, these analysts say, is for BB&T to land more institutional investors, such as pension funds and investment companies.

"This corporate-governance stuff is hogwash," said Richard Bov

Link to comment
Share on other sites

  • 1 year later...

Many of you might be a member of local or even national banks that have a huge presence here in the Triad. Over the last several years there have been many local start-up banks. Many of these local banks continue to expand and offer more services like huge banks do. Many recent or past start-ups have been FNB Southeast, Bank of Oak Ridge, Carolina Bank, Tri-Stone, Peoples Bank of the Triad, and Southern Community. Even national banks have headquarters here like BB&T and formerly Wachovia. Many other national banks have stepped a foot in to our area over the past years like Sun Trust (after the merger with CCB) and Regions Bank. So I was thinking is this the Triad's new calling card besides manufacturing and textiles? What if one of these goes Fotune 500? What are the possibilities with all these banks?

Link to comment
Share on other sites

It is doubtful. Despite a number of openings of these small "boutique" banks, there is on ongoing consolidation in the industry. The United States stands alone in the world with over 10,000 retail banks where most countries do good to have 25-50. We are headed to the 25-50 model. The big question for Winston-Salem is if BB&T will be acquired or will be an acquirer.

Link to comment
Share on other sites

the banking world is pretty turbulent. there's really no telling what could happen in the future. it would be cool for the triad to grow, but i'm not sure how much big-time banking would really go to the triad when considering how bank-centered charlotte already is.

Link to comment
Share on other sites

the banking world is pretty turbulent. there's really no telling what could happen in the future. it would be cool for the triad to grow, but i'm not sure how much big-time banking would really go to the triad when considering how bank-centered charlotte already is.

banking does contribute alot to the triad economy though

Link to comment
Share on other sites

BB&T, I think, is waiting to be bought out like metro said.

I hope not becuase it is the last remaining part of major banking that Winston has. I have noticed how they have become more stagnant over the past several of years. There was at one time a possibility of Wells Fargo buying them out if I believe so.

Link to comment
Share on other sites

It is doubtful. Despite a number of openings of these small "boutique" banks, there is on ongoing consolidation in the industry. The United States stands alone in the world with over 10,000 retail banks where most countries do good to have 25-50. We are headed to the 25-50 model. The big question for Winston-Salem is if BB&T will be acquired or will be an acquirer.

I agree, any banks that do start out in the Triad will eventually get gobbled up by a bank out of the area. Lets keep our fingers crossed that Winston-Salem keeps BB&T because once they leave, the Triad will never have a strong position in finance again. like monsoon said banks and other financial institutions are now consolidating in cities such as Charlotte, New York, San Francisco and Philadelphia. Greensboro finally lost Jefferson-Pilot to Philadelphia's Lincoln National, however the insurance division will be based in Greensboro. Its going to be hard calling the Jefferson-Pilot Building the Lincoln National Building. Its funny because both companies were named after former presidents.

Link to comment
Share on other sites

I agree, any banks that do start out in the Triad will eventually get gobbled up by a bank out of the area. Lets keep our fingers crossed that Winston-Salem keeps BB&T because once they leave, the Triad will never have a strong position in finance again. like monsoon said banks and other financial institutions are now consolidating in cities such as Charlotte, New York, San Francisco and Philadelphia. Greensboro finally lost Jefferson-Pilot to Philadelphia's Lincoln National, however the insurance division will be based in Greensboro. Its going to be hard calling the Jefferson-Pilot Building the Lincoln National Building. Its funny because both companies were named after former presidents.

I may be wrong about this, but the last I heard about the deal with Lincoln acquiring Jefferson-Pilot fell through. I know they made the big annoucement about it, but then I heard a rumor that it fell through, and I have not heard any more information since. If anyone has an update, please share.

Link to comment
Share on other sites

I may be wrong about this, but the last I heard about the deal with Lincoln acquiring Jefferson-Pilot fell through. I know they made the big annoucement about it, but then I heard a rumor that it fell through, and I have not heard any more information since. If anyone has an update, please share.

Wouldn't that be a new Fortune 500 for Greensboro?

Link to comment
Share on other sites

BB&T is such a decentralized, sprawling bank operations-wise I don't think they're a tempting takeover target. Although they might get bought to capture certain markets or business streams, with the other pieces sold off.

Link to comment
Share on other sites

Greensboro could have been home to Bank of America today if things had happened differently. Before the merger it was know as Nations Bank. Before that the bank was known as NCNB. At one time there was a dual corporate headquarters. One in Charlotte and one in Greensboro. When company executives decided to have one headqaurters, they chose Charlotte because the Queen City had a federal reserve bank but they did like Greensboro's geographic location better. If Charlotte had not had the federal reserve bank, things could have happened very differently. Greensboro might be a very different city today.

Link to comment
Share on other sites

This article proves that Greensboro and Winston-Salem wont have growth in banking. (with exception to BB&T) A small Greensboro based bank has been aquired. I think the city has another small bank headquaters but its only a matter of time before its aquired too. If BB&T leaves Winston-Salem, its over for banking.

http://www.bizjournals.com/triad/stories/2...tml?jst=b_ln_hl

Link to comment
Share on other sites

  • 4 months later...

this could be some promising news for our shaky banking industry. First Horizon is showing strong interest in expanding in the Triad area. details are pretty sketchy and there are no definites..but from this article, it sounds like something that their plans could be major for the region.

article

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...

Important Information

By using this site you agree to our Terms of Use and Privacy Policy. We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.