Branch construction on the upswing as banks counter growing competition

Memphis Business Journal - February 24, 2006
by Christopher Sheffield

Indeed, a number of banks, including de novos and new entries to the market, have tapped East Memphis, Collierville, Cordova and beyond for branches. First Bank, First Capital, First Citizens, Independent Bank, Pulaski Bank, Paragon National, M&F Bank, Triumph Bank and others have tried to carve out space in the area.

Renasant Bank will be the newest entry to the booming Collierville market when it opens a 4,000-square-foot branch at the corner of Poplar and Byhalia next week.

Frank Cianciola, president and CEO of Tennessee for Tupelo-based Renasant Bank, says Poplar/Byhalia will be a "signature type" location for the bank and will give the bank four locations.

Cianciola has more than two decades of experience in Memphis banking, having served as CEO of Victory Bank and Community Commercial Bank before starting Renasant in 1999.

He says having only a select number of branches in the right spots is the key to serving bank shareholders, although some take a different approach.

"If you have 40% market share, you have to be in a lot of spots," he says.

The Cordova location, open four years, has about $50 million in deposits while the larger and older Germantown location has about $100 million.

He says there is undoubtedly much competition for bank customers in Memphis, but in the end there will be a significant number of banks that don't do well.

But ask each bank president signing off on new branches how they'll do in Memphis and you'll get a similar prediction.

"Everybody," he says, "thinks they are going to be above average."

Indeed, a number of banks, including de novos and new entries to the market, have tapped East Memphis, Collierville, Cordova and beyond for branches. First Bank, First Capital, First Citizens, Independent Bank, Pulaski Bank, Paragon National, M&F Bank, Triumph Bank and others have tried to carve out space in the area.

Renasant Bank will be the newest entry to the booming Collierville market when it opens a 4,000-square-foot branch at the corner of Poplar and Byhalia next week.

Frank Cianciola, president and CEO of Tennessee for Tupelo-based Renasant Bank, says Poplar/Byhalia will be a "signature type" location for the bank and will give the bank four locations.

Cianciola has more than two decades of experience in Memphis banking, having served as CEO of Victory Bank and Community Commercial Bank before starting Renasant in 1999.

He says having only a select number of branches in the right spots is the key to serving bank shareholders, although some take a different approach.

"If you have 40% market share, you have to be in a lot of spots," he says.

The Cordova location, open four years, has about $50 million in deposits while the larger and older Germantown location has about $100 million.

He says there is undoubtedly much competition for bank customers in Memphis, but in the end there will be a significant number of banks that don't do well.

But ask each bank president signing off on new branches how they'll do in Memphis and you'll get a similar prediction.

"Everybody," he says, "thinks they are going to be above average."

csheffield@bizjournals.com | 259-1726