ROANOKE TIMES 
                      Copyright (c) 1995, Roanoke Times

DATE: Tuesday, December 12, 1995             TAG: 9512120053
SECTION: BUSINESS                 PAGE: B-6  EDITION: METRO 
SOURCE: MAG POFF STAFF WRITER 

FIRST AMERICAN CHIEF SAYS COMMUNITY IS ITS FOCUS

``MY SENSE IS THAT Southwest Virginia needs a local bank," said First American CEO Dennis Bottorff at the opening of the Roanoke headquarters.

First American Corp. wants its new Virginia bank to become the community bank of Southwest Virginia, not the opening wedge for a statewide expansion, its chairman said Monday.

Dennis C. Bottorff, chairman of the Nashville-based bank, was in Roanoke for ceremonies marking the company's acquisition earlier this month of Charter Federal Savings Bank of Bristol.

Roanoke is the Virginia bank's new headquarters even though it lies on the northern end of its territory. Bottorff said Roanoke was chosen because it is the service center of Southwest Virginia.

"My sense is that Southwest Virginia needs a local bank," Bottorff said.

Bottorff said First American looks at Southwest Virginia as a natural extension of its base in Tennessee. It also has some branches in Kentucky and is considering entering other adjacent states. But, Bottorff said, First American is "not trying to be a national bank."

C.R. McCullar, president of the Roanoke bank, said Charter had once looked at small banks in Southwest Virginia as possible merger partners. These were banks with assets in the range of $50 million to $100 million. First American has assets of $8.4 billion.

Charter's earlier inquiries stimulated some merger interest among these smaller banks, he said, but Charter backed off when its stock price went down, making deals less feasible.

But now that First American has acquired Charter, McCullar said, he plans to see if the bank can grow by acquiring smaller banks south and southwest of Roanoke.

McCullar said he plans to reopen a branch at Christiansburg that Charter closed years ago to save money. First American already has an office in Blacksburg.

He also plans an office in Salem and relocation of the Oak Grove branch.

Bottorff said First American is trying to be a "super community bank," focusing on consumers and small and mid-sized businesses. He said the new Virginia bank will be looking for more business accounts and loans than Charter had.

As banks merge nationwide seeking economies of scale, Bottorff said, one of the economies is usually reduction of personal service.

As a super community bank, Bottorff said, First American stresses customer service, convenience and competitive products.

LENGTH: Medium:   55 lines
ILLUSTRATION: PHOTO:  CINDY PINKSTON/Staff. First American Corp. Chairman and 
          CEO Dennis Bottorff (left) chats with Andy McCullar, president of 
          First American Federal Savings Bank, in Roanoke on Monday. color.