Community Banks Mark Second Year Profitability
Washington Business Journal (08/17/00) Vol. 104, No. 40 p.9; Winig, Eric
The booming economy of the late 1990s has brought
community banks back to life from the recession of the early
1990s, including two banks started in mid-1998 in the Washington,
D.C., metropolitan area. Bethesda, Md.-based EagleBank and
Vienna-based Potomac Bank of Virginia are both celebrating their
second profitable year in business and look forward to improving
business by focusing on local businesses and professionals that
the large banks seem to ignore. However, Bob Pincus, president
of the D.C. metro region for North Carolina-based BB&T, says the
booming economy is responsible for the success of small banks,
which are having to hire employees from a dwindling pool of
talent. Lew Sosnowick, vice president at Bethesda-based Koonce
Securities, disagrees with Pincus, and adds that many of the
experienced bank executives are leaving the newly merged
mega-banks to begin their own community banks. Sosnowick also
says that small banks must identify and stick to a niche market,
have strong management, and know their market, despite a strong
economy. According to Larry Warren, CEO of Potomac Bank, the
good economy has helped small banks, but a lot of the success
comes from the lessons learned during the recession of the early
1990s.