THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Wednesday, July 20, 1994 TAG: 9407200007
SECTION: FRONT PAGE: A12 EDITION: FINAL
TYPE: Letter
LENGTH: Short : 48 lines
The recent merger announcement of Commerce Bank with BB&T, a bank holding company in North Carolina, indicates a continuing flight of Hampton Roads financial institutions to be headquartered away from our area. This disturbing loss of local control should be of great concern to our local governments and business executives.
It was not long ago that our area was home base of two of the strongest banks in the state, Virginia National Bank and Seaboard Citizens National Bank. The predecessors of Central Fidelity, First Virginia, Signet and Dominion were headquartered in Hampton Roads.
When VNB merged with First and Merchants, a Richmond bank, its headquarters remained in Norfolk. Even when Seaboard merged and became Crestar, there was a Seaboard and a western division. In a short time, its headquarters moved to Richmond with subsequent loss of jobs and authority. When VNB merged with C&S of Atlanta, our largest bank surrendered much of its clout to Atlanta. This merged bank, because of its real-estate-loan problems in Northern Virginia, was forced to merge with the stronger NCNB North Carolina bank to survive. A recent corporate report indicated not a single member of its board from Hampton Roads. Its headquarters is in Charlotte, now Nations Bank.
Dominion's headquarters moved to Roanoke, and when First Union took it over, its headquarters moved to Charlotte. Signet - formerly Southern/Bank of Virginia - Central Fidelity and First Virginia are all headquartered in Richmond.
The importance of a strong local bank was demonstrated by the influence VNB had on bringing Norfolk & Southern to Norfolk. Charlotte has been successful in landing two major sport franchises, with the support of Nations Bank.
The point is that without a major local bank headquartered in Hampton Roads, with local men on its board who are interested in local growth, there is a limit to the attractiveness of our area for new industry or sport franchises.
It is time for our ``Fortune 100'' businesses or executive roundtable to recognize and support the retention of a strong financial institution in Hampton Roads. A merger of our cities would create this kind of productive thinking.
BERNICE K. LEVINSON
Norfolk, June 29, 1994 by CNB