Big Apple banking boom.In the era of bank mergers and acquisitions, bank expansion in the Big Apple is exploding.
The large chains are confident of their success, but in case they flop, the small operators are waiting in the wings, looking to eventually take their space at a steep discount. "We'll do our expansion in two or three years when all those branches who have expanded don't work out and will be offered at a discount," boasted Paul Fornaby, managing director of Country Bank, a local five-branch operation with approximately $315 million in assets.
But if spokespeople for banks such as Wachovia are telling the truth, the small banks may be waiting a lot longer. "We could not be more pleased with the success we're having in Manhattan," Fran Durst, vice president of corporate communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. for Wachovia said.
The bank opened its first two branches, at 45th Street and Madison Avenue Madison Avenue, celebrated street of Manhattan, borough of New York City. It runs from Madison Square (23d St.) to the Madison Bridge over the Harlem River (138th St.). In the 1940s and 50s, some of the major U.S. and in Rockefeller Plaza last year. According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. Durst, the branches "exceeded their year-end goals in just a couple months, as it relates to deposits."
Since then, the bank has opened three more Midtown branches and has plans for six more by the fall, including a branch at Broadway and 56th Street. According to Randy Anderson Randy "Pee Wee" Anderson (July 17, 1959 - May 5, 2002) was a professional wrestling referee who worked for the NWA's Jim Crockett Promotions and World Championship Wrestling. , a professor of real estate finance at Baruch College's Zickland School of Business, the strategies are "a risky sort of endeavor."
But, he added that it's a calculated risk, because New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , along with cities like Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , grew in population during the 1990s.
"A lot of these banks are betting on the fact that the 24-hour cities are going to continue to experience population growth," said Anderson. "Some of this population growth is occasionally in older age groups. The baby boomer group is a large demographic."
The baby boomers, Anderson explained, "are in their peak wagering years." Their deposits are supplemented by those of wealthy retirees and seniors who have decided to move back to the city for the cultural opportunities, Anderson added.
Hugh Finnegan, a real estate attorney with Sullivan and Worcester, believes the banks' main street invasion has been influenced by a variety of factors.
In the case of banks like Wachovia, "they're looking to expand their presence in this area," he said.
"They haven't had a strong presence in the New York metro For the region, see .
Metro New York is a free daily newspaper in New York City started in 2004. Its main competition is AM New York, with which it practices many of the same distribution and marketing strategies. area, particularly in the city itself," Finnegan said.
In other cases, according to Finnegan, banks are simply looking for Looking for
In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. opportunities to be acquired. However, Finnegan said he was surprised by the irony of more "brick-and-mortar" branches in the age of online and telephone banking.
Finnegan added, "For some of them, (the expansion) will work, for some of them, it won't. Which ones are in which category? I don't know Don't know (DK, DKed)
"Don't know the trade." A Street expression used whenever one party lacks knowledge of a trade or receives conflicting instructions from the other party. ."
Fornaby said he believed the banking expansion was triggered by the ventures of Commerce Bancorp, Inc., a Camden County, N.J.-based bank, which plans to open 40 additional branches in New York this year.
Commerce deposits are currently a 50/50 split between accountholders in the New York and Philadelphia area, but the New York shares are expected to increase, according to an article in the Philadephia Business Journal last month. In a filing with the Securities and Exchange Commission, Commerce said that by 2009, 60 percent of its deposits will be from metro New York.
Meanwhile J.P. Morgan Chase recently acquired Bank One of Chicago and the merger of Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. and Fleet was announced last Thursday. But Bank of America spokeswoman Eloise Hale said the company was trying to consolidate office and branch space and did not have immediate plans to open new branches in New York.
However, the Fleet branches in Manhattan will become Bank of America branches. The company also is working with developer Douglas Durst on an office tower at 113 W. 42nd St.
In February, North Fork Bancorporation Inc. and GreenPoint Financial Corp. announced a $6.3 million merger, which will create the largest regional bank in the area. Meanwhile, Wachovia has hinted that it's looking to open even more branches in Manhattan's downtown neighborhoods.