Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, April 27, 1994 TAG: 9404270092
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: By MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
Byron Yost, who currently oversees First Union's local operations in the Roanoke region, was named executive vice president in the bank's new commercial portfolio management division. He will be responsible for asset quality and risk management in the bank's Western Virginia region, encompassing the Shenandoah Valley and Southwest Virginia.
Yost will report directly to Dick Carling, vice chairman and chief credit officer of the Virginia bank.
Replacing Yost as Roanoke area president will be Chuck Saldarini, who has been based in Roanoke overseeing First Union's corporate banking activities. Saldarini will be responsible for operations in 23 First Union offices in the Roanoke Valley and surrounding communities.
Their promotions will be effective July 1.
Ben Jenkins, president of First Union National Bank of Virginia, said Yost's promotion is part of the bank's current efforts to enhance its commercial banking products and services throughout Virginia, Maryland and Washington, D.C.
The goal, he said, is serving business customers "more effectively and efficiently."
"Beyond his people skills, he also possesses solid judgment and experience in the credit arena," Jenkins said of Yost. "We now need these skills - and his leadership ability - in the portfolio management side of our bank."
Commercial banking accounts for half the bank's profits and half of its balance sheet, Jenkins said, and the portfolio enjoys good growth and good credit quality.
But he said banks still conduct commercial lending operations the way they did 20 years ago. Now, according to Jenkins, First Union has undertaken an internal study with outside help from Arthur Anderson & Co., a national consulting and accounting firm.
First Union is "early into the study," Jenkins said. Any changes will be implemented late this year or early next year.
He said the bank has been talking with customers and focus groups and making internal tests leading to a higher performance for commercial banking. The test, he said, is how well the system serves the commercial customer.
The study is looking at allocation of dollars and resources, training, technology and use of people. The result, he said, will be reallocation of people into new jobs in the company leading to benefits for the customer.
Jenkins said the study has not yet produced an accurate review of staffing requirements. But he said any rumors about staffing are "just that - rumors."
"We will be moving people to different jobs," he confirmed. Speculation in the Roanoke banking community is that as many as 200 First Union positions could be affected by the changes.
Jenkins declined to give details of the new plan, saying it is proprietary information until it is implemented.
Carling said the process is not being designed and implemented with an intent to reduce jobs or costs. The goal, he said, is to produce an "Olympic caliber" commercial lending operation throughout First Union's entire system.
David Carroll, vice chairman for general banking, said banking has become more complex and more competitive with more opportunities over the last 15 years. The bank must consider the optimum way to deliver services.
All banks pretty well deliver commercial lending in the same manner, he said, primarily by going out and making calls. Now, Carroll said, it's time to streamline the job to make the operation more responsive to customers.
by CNB