Mergers provide deep pockets for addition of branch locations

Northern Colorado is experiencing growth in the number of bank branches while the number of experienced bank employees continues to shrink. This is the natural progression of market expansion staying ahead of population growth while individual banks strive to maintain or gain a thin market share.
Since the beginning of 2004, three banks with local operations have received a shot in the proverbial financing arm and all three are on the prowl for customers and employees.
On July 1, Bank One became part of JPMorgan Chase & Co. The resulting holding company has $1.1 trillion in assets and a combined market capitalization of approximately $130 billion.
After the completion of the merger, Bank One plans a new branch at Greeley Commons, under construction at the intersection of 47th Avenue and the U.S. Highway 34 Bypass. The location is part of the $50 million expansion of banking centers in Colorado that Bank One announced in 2002.
“We are still looking at adding other locations in the years to come,´ said Ron Schneider, president of the Northern Colorado market for Bank One.
The 4,000-square-foot office will employ 10 bankers and will offer an ATM lane and a night depository.

Relocation of branches key
For some banks building a new branch just doesn’t make sense. Instead officials may decide to relocate a poorly performing or off-the-beaten-path branch to a better location.
Centennial Bank of the West is moving its north Loveland branch, currently located at 221 E. 29th St., to a more visible location in north Loveland.
The bank is moving to a strip center located in front of Hobby Lobby and Big Lots along North Garfield Avenue, or U.S. Highway 287.
The relocated branch is not the only branch Centennial Bank of the West plans on adding in Loveland.
“We want to open one on the east side of (Interstate 25) but nothing has been finalized,´ said Bill Farr, president of Centennial Bank of the West.
Farr’s bank, like BankOne, has the resources that come from a recent merger. The company was acquired earlier this year by a California-based investment group, which has since announced plans to buy Denver-based Guaranty Bank.
Farr said staffing banks is getting more complicated regionwide, but he said he has hired 12 new employees since June 30, including five lenders.
“Our changes are exciting other bankers so it has become much easier to attract employees,” Farr said.
In Fort Collins, officials with Community First Bankshares Inc. are anxiously awaiting the closure of the bank’s merger with BankWest Corp. Upon the merger, the bank will proceed with plans to relocate its branch located at 426 S. Link Lane in north Fort Collins.
The bank in the process of signing a letter of intent for a location along the Mulberry Street corridor.
“I actually think the time has come that the city of Fort Collins will recognize the Mulberry corridor as a high-traffic area,´ said Gerard Nalezny, president of Community First Bank of Northern Colorado. “The retail is improving with the presence of Wal-Mart and I feel it is a nice northern complement to Harmony Road.”
Nalezny said he has predicted the shortage of not only bank employees but also good bank employees for several years.
“Competition and the availability of good bankers has resulted in a increase in pay scales,” Nalezny said. “But some people out there say it is about time.”
First National Bank of Fort Collins is currently the leader in deposit market share, but Chris Osborn, president of First National of Fort Collins, said growth of these other banks doesn’t change his bank’s plans.
“Our growth plan is to continue to meet the needs of growth in Larimer County,” he said.

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