
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, May 22, 1993                   TAG: 9305220124
SECTION: BUSINESS                    PAGE: A-4   EDITION: METRO 
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

A BANK AT KROGER

The Kroger Co. said Friday it expects to announce early next week the identity of a new bank to take over the in-store Money Markets branches operating at several of its supermarkets.

Among those said to be likely operators is a unit of Memphis, Tenn.-based National Commerce Bankcorp, which would be new to Virginia.

First Union Corp., which owns Dominion Bank, said several weeks ago it will close the six Kroger locations on June 11.

Two Virginia-based banking companies also could be likely successors: Crestar Financial Corp. of Richmond and First Virginia Bank of Falls Church.

Nobody was available at National Bank of Commerce late Friday to discuss the company's interest in the Kroger locations.

Henry Coffey, bank industry analyst for J.C. Bradford & Co. in Nashville, called National Bank of Commerce "one of the most profitable banks in the South" and "an utterly phenomenal institution with a very strong credit culture."

Freda Carper, spokeswoman in Roanoke for Crestar, said her company is "interested in the concept" of supermarket branches. She said Crestar began testing the idea last September by opening a branch in a Charlottesville supermarket. It will open a second grocery store branch there in late June and is "looking for opportunities" along that line. But Carper declined to comment on the Kroger situation.

James Hinson, president of First Virginia Bank-Southwest in Roanoke, said it has similar facilities in other parts of the state and is evaluating the Kroger situation, but no decisions have been made.

The money markets, full-service branches with deposit, loan and other services, are in four Roanoke Valley Krogers: Lakeside Plaza; next to Tanglewood Mall; Cave Spring Corners, and Lake Drive Plaza in Vinton. Others are at Blacksburg and Harrisonburg.

When it announced its withdrawal last March, Dominion said the branches were unprofitable because they were used primarily by people cashing checks and operating the automated teller machines.

Grocers, however, say bank presence boosts their sales because shoppers have quick and direct access to cash.

Dominion said in March it would be willing to maintain automated teller machines at the supermarkets, but Kroger said then it had no interest in such a limited arrangement.

David Scanzoni, spokesman for First Union, said the teller machine at the Blacksburg Kroger was the busiest in Dominion's system.

He said First Union will "look for other opportunities for ATM locations," including sites near the Kroger stores.

by CNB