Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, March 1, 1994 TAG: 9403010037
SECTION: BUSINESS PAGE: C-8 EDITION: METRO
SOURCE: MAG POFF
DATELINE: LENGTH: Medium
Saying the first year has been period of transition with the merger of four separate institutions, Ben Jenkins predicted success in the second year will depend on "how well we serve customers." The bank is ready to concentrate on sales and service.
"I think we've made great strides," especially in the past three months, Jenkins said. "We'll be better yet in [another] 90 days."
Jenkins said officials of the Roanoke-based unit of First Union Corp. of Charlotte, N.C., have worked much of the past 12 months to meld four institutions into a single entity.
While local attention has been focused on the largest of those units, Dominion Bankshares Corp., of Roanoke, First Union of Virginia also consists of former operations of First American Metro Corp. of McLean, Sailors & Merchants Savings Bank of Vienna and Meritor Savings Bank of Florida, which had branches in Northern Virginia.
He said the bank has set up its organizational structure, matched "the right people with the right jobs" and concentrated on efficiency and productivity issues.
Because of the year of transition, Jenkins said, First Union National Bank of Virginia "is a lot stronger than a year ago" and ready now to focus on serving the customer.
As part of its merger with Dominion, the bank eliminated 850 jobs in the Roanoke Valley, but then added more than 700. Now, Jenkins said, "a shade" over 2,200 people work for First Union in the Roanoke Valley.
That's a few more people than worked for Dominion at the time of the merger, he said.
Jenkins said he has not be able to prove that 850 jobs actually were eliminated. That figure was an estimate when the merger took place, "the best number at the time."
Besides, he said, the jobs were in flux because Dominion already was in the process of downsizing before the merger was announced. Many of the positions were vacant, a few through layoffs, but primarily through attrition.
Jenkins foresees continued employment growth in Roanoke, "given growth in the Virginia bank."
Although First Union doesn't report its state results separately, Jenkins said the Virginia bank's "performance numbers are attractive. . . . It was a very good year for First Union National Bank of Virginia."
For 1993, First Union Corp. reported a gain of $793 million, up 124 percent from a year earlier.
Guy W. Ford, who follows the industry for Scott and Stringfellow in Norfolk, said, "First Union is a growth company. That's their history; that's their mindset."
He expects First Union to make even more acquisitions in Virginia, as it has in Florida, Georgia and elsewhere. The company, he said, "will grow the bank."
In its first year, Jenkins said, the Virginia bank outperformed the projections made at the time the acquisition of Dominion was first discussed in the fall of 1992.
It was also, he said, "a good year in Roanoke. Byron [Yost] has done a good job." Yost is president of First Union's Roanoke regional operations.
Two areas of new jobs are the service centers for consumer loans and for credit cards throughout the First Union systems. Those departments should grow as the bank as a whole grows.
Some increase might always come through additional mergers.
"We're always looking" for new merger partners, Jenkins said. First Union wants to continue acquiring banks.
But, he warned, there's "nothing imminent. Nothing is being worked on" at the present time.
by CNB