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BANKING - March 2001 by Lisa Summers Sidebar-
Seven of those banking institutions can be considered the giants in the industry, with assets of $1 billion or more. The remainder is split between those with assets of $100 million to $1 billion (101) and $100 million or less (137). The Lane Report has compiled lists of the 13 largest Kentucky-based banks and the 13 largest banking companies operating in Kentucky. Both lists were generated from FDIC reports available at www.fdic.gov. National City Bank of Kentucky, Louisville, ranks as the state’s largest bank in terms of total assets. It has over 100 locations and $9 billion in assets. Bank One, Louisville, and Community Trust Bank, Pikeville, round out the top three largest Kentucky-based banks. Although the lists focus on Kentucky’s largest financial institutions, there are many notable banks that didn’t make the list. And as the old adage goes, bigger is not necessarily better. Several small Kentucky banks are attempting to prove that point. For example, Bank of the Bluegrass in Lexington has only one location. But it also has $100 million in assets, a major component of which is loans in the community. M. Monroe Jett is the bank president, loan officer, and marketing director. “We call ourselves a David among Goliaths,” said Jett. “We service people who want to be treated well, who don’t want to be lost in the crowd.” Jett said surveys have shown that 73 percent of his bank’s customers are called by their names when they enter the bank. “It’s banking the way it used to be,” said Jett. Bank of the Bluegrass emphasizes managed growth, noted Jett. It has 33 employees and grew at a rate of 23 percent last year. The bank also offers the conveniences of a larger institution, such as debit cards, automatic teller machines, drive through lanes, and professional money management services through a trust department. “The reason that we’ve done so well over the last 28 years is because we care about our customers and we give them personal service,” said Jett. “People like the way we do business and that’s brought us where we are today.” First Security Bank in Lexington is another example of a small banking institution with a loyal customer base. Bank Founder and Chairman of the Board Julian Beard said his institution has three Lexington locations and approximately $140 million in assets. “We are not a niche bank,” said Beard. “We’re just small and new. We’re just three years old. But we intend to be a bank for the whole community.” First Security Bank executives are focusing on building a network of branches while maintaining a high level of personal service. “People (in the bank) are empowered to give answers,” said Beard. “There’s not a lot of having to jump through hoops. It’s the difference between a speedboat and a tanker on the ocean.” Other Kentucky banks don’t rely on physical locations at all. An example is USAccess Bank. USAccess Bank is an Internet bank headquartered in Louisville. It opened for business in February 1999. USAccess Bank CEO David Pierce said the bank’s “growth has really been extremely good.” USAccess does offer limited services out of a physical location in Louisville. But the majority of its business is handled online. Pierce said the outlook for online banks is bright. “It’s a huge market for us,” said Pierce. “There’s room for a lot of online banks to be successful.” Pierce
said he expects the market for online banks to grow
substantially in the coming years. |
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Recent
reports from the Federal Deposit Insurance Corporation
(FDIC) show that Kentucky has a total of 245 FDIC-insured
commercial banks.