analysis are directing attention to the finanical
sector. Saying it is the most over sold. The baby in the
I would like to hear everyones
perspective on mergers. I have been somewhat surprised in the
low volume thereof. TN & Al have seem virtually NO
consolidation. AR seems to have had the most. LA and MS still
lagging in the merger area. I would have though that
things would have moved at a faster pace. These
mid-south states may not have the high growth rate
expections, but it has always being my impression that the
banks in this area were very profitable solid
institutions. I would have though that in LA, HIB & WTNY would
be gone, as well as TRMK & BXS in MS. FAM seems to
be the most vulnerable. Expect ONE to take UPC after
FCN. Keep expecting to hear at anytime RGBK's next
move(TRMK). SOTR has really been absent.
I appreciate your response to Obee's
I once voted my proxy against a merger with UPC,
not because of concern for any individual, but for
the community. You were personally hurt by such a
merger and so was the community of my concern.
was immediately enriched by the merger (much, much
less so now) and don't want to belabor the point, but
this subject does matter in assessing UPC's
I have no reason to disbelieve Obee's relation of
the "Duck Hill" situation, nor your earlier one.
Since you infer that you may have been mistaken, I
would appreciate your checking of the facts and
reporting to the board.
Your advice is right on the money. That very
reason is why I, just 3 months ago, left banking after
12 years. I had been through one merger and the bank
I was working for seemed to be headed for the same
fate in the near future. I don't want to discourage
anyone from going into banking, but they better have
their eyes open.
Wish I could figure out who you are. I have my
suspicions but I'm not positive. I think you maybe somebody
I used to work with quite a bit. You speak like an
insider of which I am not any more. If you are from the
Grenada area then you probably have figured out who I am.
The last info. I got on the situation was different
from your post. But, things may have changed, I may
have been misinformed. Since I don't live in Grenada
any more I have to rely on other folks for my info.
In response to your post of new business for Duck
Hill I have my doubts. But, I will admit to being
biased against UP.
Hard not to be when you're
uprooted from your hometown after 32 years. Anybody that
says 'thats just business' should have to go through
it one time.
OK guys I've said my piece. Now I
will move on to talking about the prospects of this
Employees at Duck Hill Bank were not
involuntarily replaced, down-graded,nor suffered any pay cut.
Hours were lengthened somewhat to make 40 per week.
Grenada UP loaned Duck Hill one of their employees at
each office for two weeks, to help them learn
procedures. In fact an additional employee is being hired to
assist with the immediate increase of business from UP
customers in the area. The Branch Manager has not been
replaced. UP promoted her to Vice-President and Branch
Manager. The new faces there are the temporary assistance
from Grenada UP and a new teller picked and hired by
Duck Hill management.
Enjoy your posts,
God Bless all! OBee
but a lot still going on in the company. UPC at
$43 yields a 10.5% net income return on investment in
1999. UPC is still catching up on the consolidating
end, but they will get there. That is probably why you
are reading the painful stories about mergers. Maybe
the reason for the quick rash of small purchases is
they want to take advantage of their reputation as a
somewhat "friendly" acquiror before many of the stories
such as Red's are prevalent. UPC used to have the old
Bank One "uncommon bond" type philosophy, but it seems
to be changing.
My advise to people who are
in or are entering banking would be to gain all of
the knowledge that you can in as many fields as you
can and be ready to be mobile. This industry will
continue to consolidate and if you are a back office type,
opportunities may not be in your back door. You might also
consider investing as much as you can in your bank's
stock, that way you win either way. Good luck to all, do
try to have a good attitude, and remember that it is
not the fault of UPC management that the
consolidation is taking place. They are doing exactly what they
should be doing because it is their company now and they
have a duty to make it as lean as they can. If you are
an owner and/or an executive of a bank considering
selling, you should take heed. Remember that when you sign
the deal, who decides what happens to the staffing
levels and the communities that you serve has forever
changed hands the moment you sign.
Ken, I was just
trying to change the luck of the market by staying off
the net a few days. Next time I think I should try
something else, huh?
You are right on about the loss of the
"local" feel. It looks like the UPC/MAGNA Banks in our
area are really losing the customers. I have een
little or no advertising and the new signs just went up.
I know that the staff has to be trimmed and that
you have to be efficient in this day and age. the
margin of profit is very slim in the financial services
area and the thin see to win. It is funny to watch
people leave a bank and for a $1.00 per month charge on
their ATM card, but it happens.
Feel pretty good
about the market. I am looking at a few "bargain" and
am going add some additional "quality" to the
protfolio. I like a company like Lucent (LU) again, had been
a buyer a year ago and it looks like it is time
The overall market a bargain and I see it
staying that way for a while, just going to take time.
Have a great weekend!!
You're probably right about the comparison. And
don't get me wrong, I understand that job loss is part
of mergers, I was just presenting to Pickle what had
happened in the past.
FYI, Duck Hill Bank is a small
two branch bank located in Duck Hill, MS about 12
miles south of Grenada. This bank has been around
forever. It was the only bank my parents, grandparents,
and great grandparents had ever used until UP bought
them. They immediately moved their money to Valley Bank
out of Greenwood. I, for the life of me, can not
figure out the thinking on this buyout. The only thing I
can come up with is one of the major stockholders in
Sunburst had enough pull with UP board to get this done.
Also, unfortunately, I have a cousin who has worked all
her life with Duck Hill, had made it to a branch
manager position and now UP is bringing someone else in.
All people I know but still does not make it right.
OK, I'm getting off my soap box.
If your banks management is solid and mature
you've got no problem. Attrition will take care of
nearly all cutbacks unless you were grossly overstaffed
in the first place. The customer's perception should
be very positive if handles properly locally. Our
back in AR is doing well, as it did before, and I'd
expect that to continue, it's been a few years now and
UPC is a household name.
The employees locally
and how they handle customers and explain the
inevitable changes are what makes a Community Bank, not the
sign out front!!! Meet the change positively and
you'll like the results.
Obviously your experience was much different than
mine. Sunburst bank had excellent management and most
were not kept on. I'm not saying it was hostile but it
was clear that UP was not interested in keeping many
people. I tried to meet the change positively and I ended
up without a job. The branch personnel was kept
basically intact but I still here from the customers that
UP is just not very customer oriented. I've heard
that since the merger was announced over 3 years ago.
And I definitely know that the loss of jobs was
signigicant regardless of how mature or solid the staff was.
And we were already running fairly lean. Like I said
you have one experience with a merger with UP and I
have another but I don't appreciate the implication
that the employees were not, as you put it, 'solid and
mature'. You seem to indicate that it was our abilities
which resulted in the job loss and that simply is not