Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, January 23, 1994 TAG: 9401260405
SECTION: ECONOMY PAGE: EC-9 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Long
As manager of NBC Bank's Tanglewood branch, Alex Bohner is accustomed to callers asking the same three questions:
I've never heard of you. Where are you from?
Are you insured by the Federal Deposit Insurance Corp.?
Is your bank financially strong?
The answers Bohner gives are: Memphis, Tenn.; yes; and yes.
He has reason to get calls from curious observers.
First of all, NBC Bank debuted in Western Virginia on July 16 at some of the region's most visible locations.
But instead of sitting in brick boxes in the clutter along highways and commercial streets, NBC branches operate at open counters inside Kroger supermarkets. NBC banks are in Kroger stores at Tanglewood Mall, Cave Spring Corners, Ridgewood Farms, Lakeside, Hardy Road and in Blacksburg.
NBC Bank plans for 1994 include opening at Kroger's Crossroads store, which is being remodeled. It is possible, Bohner said, that NBC could add a branch at Kroger's Hollins store if studies show demand is strong enough.
Despite its untraditional branch locations, its savings interest rates are attracting attention.
Recently, for instance, NBC Bank paid 4 percent for a six-month certificate against the range of 2.67 to 3.14 percent offered by other area banks.
But, as the bank's advertising says, depositors have to open another account at NBC to buy a certificate at the higher rate.
So it should not be surprising that NBC Bank has posted impressive figures since it moved into Virginia six months ago.
Bohner said the six locations have deposits totaling $68.2 million (an average of $11.36 million a branch) and loans of $3.7 million. "We've done very well."
Growth, he said, has been consistent, and loan business has been especially gratifying to him.
Deposits, he said, started flowing in "from day one." Loans have taken off in the past three months.
"People are getting to know us as a full-service bank," Bohner said. They now approach what NBC calls its "super money markets" for a variety of products, such as home equity loans.
NBC Bank is the Virginia affiliate of National Bank of Commerce, a 120-year-old institution in Memphis. It has total assets of $91.7 million. The banks are units of National Commerce Bankcorp.
NBC came to Western Virginia at the behest of Kroger after First Union Corp. pulled out of supermarket banking, saying it couldn't develop the business - especially loan business. That decision was made after First Union acquired Dominion Bankshares Corp., which had operated the Kroger banks as "Money Market" branches.
National Bank of Commerce is one of the largest players in the supermarket niche and has an affiliation with Kroger going back about a decade.
The Tennessee and Virginia banks have 64 branches, Bohner said. Of that number, 48 offices are inside Kroger stores.
Supermarket banking is a completely different environment from a traditional branch, Bohner said.
Employees at a typical branch must wait for people to come to them, he pointed out. Inside Kroger, there is a tremendous traffic flow of grocery shoppers.
At Kroger, he estimated, 95 percent of the people inside the store are not customers of NBC Bank. The question is how to reach them.
Every 25 minutes, Bohner said, an announcement over Kroger's in-store public address system concerns a banking product.
During the hours of slow banking business, he added, employees go out into the aisles to talk to patrons.
"Opportunities for sales and business are right at your fingertips," Bohner said. "You've got to be aggressive and use the opportunity you have. . . . You've got to seek new business and not wait until it comes to you."
Bohner came to Roanoke with the bank, arriving in June to prepare for the opening.
He joined National Bank of Commerce in Memphis 2 1/2 years ago and moved to Nashville before coming to Roanoke.
A typical branch for NBC, the Tanglewood office has a staff of four full-time people and is adding a floater.
NBC hired a lot of people in the Roanoke Valley and then taught them banking. Bohner said the company seeks out employees who are "bright, attractive people who want a challenge."
If people are sales- and customer-driven, Bohner said, they can learn banking.
The branches operate from 10 a.m. to 7 p.m. weekdays and from 10 a.m. to 4 p.m. Saturdays.
Despite the advertising emphasis on deposit and loan rates, Bohner believes NBC is growing here because of "value and service."
Rates bring inquiries, he said, but "our aim is to provide top-flight services to customers."
Knowing they have the support of management and good products to sell, Bohner said, gives bank employees the "added momentum" to make every day a big day.
Convenience is also important, he said. People can shop and bank with a single stop. They can come to Kroger knowing they will get the service to "get them on their way."
NBC Bank, Bohner said, kept a lot of the deposit business that was formerly with First Union, but it also has added to it substantially. "We've done very well at this bank."
The rates have lasted for the six months NBC Bank has been here.
Rate decisions are made by upper-level management, he said, but Bohner feels confident of having a wide edge over other banks at least through the middle of this year.
The rates, he explained, are not "bait." Management, he said, wants to build deposits when it opens in a new location. With a broad deposit base in place, good service will attract loan business.
Bohner encourages customers' questions, and he applauds people who want to know their bank is strong as well as insured.
NBC Bank, he said, is one of the nation's top performing banks in the rate of return measured against earnings and assets.
"This is a very strong bank they can count on to protect their money," he said. "You'll never need the FDIC to get your money back from this bank - but it's good to know it's there."
Furthermore, he said, NBC is committed to the Roanoke Valley for the long haul.
\ NBC BANK\ A NEW NAME\ \ The company: NBC Bank is the Virginia affiliate of the National Bank of Commerce of Memphis, Tenn., one of the nation's top performing banks.
\ Headquarters: Memphis, Tenn.
\ Roanoke Valley operations: NBC Bank opened July 16 at six western Virginia Kroger supermarkets: Tanglewood, Cave Spring Corners, Ridgewood Farms, Lakeside, Vinton and Blacksburg. It will also open this year at the Crossroads Kroger store, which is being remodeled.
by CNB