Table of Contents
Cover Story:
Banking On Change
Rockland’s financial institutions adapt to a changing county’s needs
Feature Story:
Give Him Credit
Palisades Federal
Credit Union CEO/President
Mark Welshoff just wants
to save you money
RBD Round-Up:
What's Your Opinion?
County Exec Signs Ban on Smoking in Cars. Do You Agree?
DEPARTMENTS:
Economic Round-Up
• The Smart Investor
Your portfolio is doing great, so why rebalance?
Retail Round-Up
• Delinquencies Decline
Credit card loan delinquencies decline In first quarter of 2007
• New In Town
Businesses opening or expanding in Rockland and Orange Counties
• Why Are The Chains Everywhere?
Retailers who reinvent themselves stay successful
Invest in Your Community
• Red Cross Honors Volunteers
Two award recipients from Rockland County
• Dress Success
Local dentist helps disadvantaged woman get her life together
• School Supplies Drive
Rockland County Board of
Realtors annual drive is here
• Non-Profit Calendar
Dedicated Section:
Rockland Business Association:
The President’s Desk
Time To Celebrate!
RBA marks 40 years of community involvement
Call For Memories
RBA asks for your help to celebrate its 40th anniversary
RBA Happenings
• Committee and Council Info
• Calendar of Events
• New Members
Banking On Change
From sales to mergers, online banking
to retail hours, banking in Rockland
continues to reflect the needs of a
changing and often demanding clientele.
By Adrian Burke
“Everybody’s there,” agrees Mark Welshoff, President/CEO of Palisades Federal Credit Union, which just opened its first retail storefront on the strip. “Nearly every bank in Rockland has a location in New City.”
“It’s a nice thing, actually, to have all these banks in New City,” says Alex Gromack, Clarkstown Supervisor. “New City is home to a lot of the county offices, but it shows how much impact we as a business community have for all the major banks to want to do business not only in New City, but here in Rockland.”
Banks are an essential part of the United States economy – in fact, banks are the single most important supplier of credit. Banks come in many varieties, including community, regional and money center banks and holding companies, as well as savings institutions, trust companies and savings banks.
“This transaction provides an opportunity for USB. Holding Company Inc. share holders to receive
an attractive value for their shares, and it brings
Key’s high commitment to service and world
class products to our communities,”
USB Chairman and CEO Thomas Hales
There are more than 94,000 bank offices and branches and 396,000 ATMs — that's more locations in the U.S. than movie theaters or shopping malls, says the American Bankers Association, noting that with nearly $12 trillion in assets and more than $1 trillion in capital, the banking industry has the capital and level of commitment to support the financial needs of individuals, businesses and all levels of government.
But banking has also been one of the most challenged and challenging industries as well. As new banks enter the market and others merge—Chase Manhattan’s acquisition of the Bank of New York’s retail banking centers, and the recent news of the sale of Union State Bank to KeyCorp—smaller community banks disappear. How many savings & loans can you count?
Banks of Rockland County
According to the New York State Banking Department, the number of domestic offices of commercial banks and savings institutions declined by 451 from the fourth quarter of 2005 to the fourth quarter of 2006. When JPMorgan Chase purchased The Bank of New York’s 344 retail branches in 2006, these branches, most of which were in New York City, moved under a federal charter.
Changing Face of Banking
Used to be that every town, village and community had its own roster of community banks, offering basic banking such as checking and savings, loans, and more. You could walk in, know the teller and cash a personal check with no questions asked, or get a loan for some necessary equipment for your small business. But changing demographics, internet banking, remote access, and the ideology of treating banking not as some white glove enterprise but as just another retail operation have revolutionized the business.
With so many people working outside of Rockland, and conversely, those working here living outside the county, many consumers want a bank that has offices in multiple locations, which hinders a truly local bank, somewhat. USB had locations in Westchester, one in Manhattan and two in Fairfield County, as well as in Orange Counties, making it more attractive.
Yet, many see the USB deal as a natural one, given that Key’s reputation as a community-centered bank are combined with its ability to offer some products that USB does not have.
“This transaction provides an opportunity for U.S.B. Holding Company Inc. share holders to receive an attractive value for their shares, and it brings Key’s high commitment to service and world-class products to our communities,” said USB Chairman and CEO Thomas Hales. “While we explored many alternatives, including remaining independent, we feel that our combination with Key is best for our clients and employees.”
Rockland is a very unique community. Most people that you meet will tell you they’re from Rockland, not Pomona, or Monsey, or Spring Valley. We’re very county-centered, and because of that, community-centered banks prospered here.
“Union State Bank clients will be able to take advantage of Key’s extensive range of products, including private banking, small business banking, commercial and real estate lending, and equipment leasing,” said Key's Northeast Regional President Thomas Geisel.
Geisel also noted that Union State Bank clients would gain access to Key's 1,500 ATMs as well as one of the top-ranked online banking websites in the industry.
Banks are key to the community
Banks make loans to consumers to finance key purchases like a home, an education, a car, or a major appliance. Bank credit helps small businesses get started, and helps all businesses grow and prosper. Banks help state and local governments fund a variety of public improvements like schools, roads, water and sewer and public health facilities. And banks are major players in financing the federal government as both dealers and holders of Treasury and agency debt securities. In each of these roles, banks support the creation of jobs and the growth of our economy.
Both Provident and USB were significant contributors: Just take a look a the USB Cancer Center at Nyack Hospital, or the huge support given to nearly all local charities by Provident Bank. Recently, the bank’s charitable foundation contributed $15,000 to Home Aides of Rockland, Inc. to fund the purchase of a new van for the organization’s Transportation Support Program.
So while the days of the local savings & loan handling your Christmas club cash may be over, are larger commercial banking taking the time to understand the needs of its newly acquired clientele? Rockland is a very unique community. Most people that you meet will tell you they’re from Rockland, not Pomona, or Monsey, or Spring Valley. We’re very county-centered, and because of that, community-centered banks prospered here. According to Tom Hales, “Like Union State Bank, Key also has a long and established history of commitment to its communities.”
Banks help state and local governments fund a variety of public improvements like schools, roads, water and sewer and public health facilities. And banks are major players in financing the federal government as both dealers and holders of Treasury and agency debt securities.
Clearly, Rockland is a great spot for banks. With high income and education levels, the demographics make it perfect, hence the plethora of banks in New City. Hudson City Bank, the largest thrift in New Jersey has one office in Rockland, located, where else, on South Main Street in New City. The largest bank in New Jersey—it was also recently added to the S&P 500, Hudson City.
Bank Mergers: What’s the Real Cost?
Clearly, many banks merge to enhance their retail positions, much as in the case of Chase Bank’s acquisition of the Bank of New York’s retail operations earlier this year. However, other segments, notably middle-market companies, may be underserved as a result.
Banks most often acquire other banks to expand their retail franchise, to leverage operating costs over larger customers bases, or to offer new products or to reach new customers.
However, the mega-mergers that have formed increasingly larger banking operations may cause compatibility problems, difference in scale and operating philosophies that accelerate customer attrition.
Retail customers who leave their banks after mergers generally do so due to the loss of personal contact with the bank staff, or due to fee increases that the cost of financing the mergers may bring.
Provident Stands Alone
Steadfast in its determination to remain community centered, Provident Bank has nonetheless shown its own mettle in expanding outside of its traditional market. The bank has consistently acquired small banks such as Florida National Bank, and others in neighboring markets, specifically in Orange County.
CEO George Strayton also masterminded the acquisition of The Hudson Valley Investment Advisors Inc, in Goshen, that had $200 million in assets under its management.
Provident New York Bancorp will set up a newly formed SEC registered Investment Advisory firm (Hudson Valley Investment Advisors, LLC) that will continue to do business under the name Hudson Valley Investment Advisors.
At the time, Provident President and CEO George Strayton said, HVIA’s expertise and commitment to top quality service will contribute significantly to continuing the bank’s strategic growth and expanded services in Rockland, Orange, Sullivan, Ulster, Putnam and Bergen Counties.
“We look forward to helping businesses and consumers in our marketplace connect to the opportunities that will become available,” said Strayton.
Provident has always been known for its ability to connect with its customers. Founded more than 100 years ago, the bank still has its original account books, written by hand. Not surprisingly, descendants of those original depositors still bank with Provident today; many businesses still retain their accounts, as well.
But as time change, smart companies change, too, and Provident has proven its up to the challenge. They have consistently acquired banks and other financial concerns that help them expand access, expertise, and product offerings to a broader audience.
Says Hudson Valley Investments Company president Joseph Guarino. “Provident’s financial resources and presence in our communities will allow us to attract and retain top talent, which will contribute toward future portfolio performance while providing greater depth to our existing staff and enhanced leadership in the future.“
As for what the future holds, it’s anyone’s guess. For now, businesses will wait and see what Key Bank has in store for the area branches of USB and what new products and services it plans, as well as what role they will play as a community partner. RBD
How’re We Doing?
According to the New York State Office of Banking, in its 4th quarter report Financial services institutions in the State serve “not only New York residents from Montauk to Buffalo but also customers around the world.” Current economic conditions were reflected in New York State-headquartered commercial banks and savings institutions reports, which showed a slowing in some areas of lending, increases in noncurrent loans, and increases in interest expense.New York headquartered banks maintained a higher median net interest margin than the U.S. average, as well as a lower ratio of noncurrent loans to total loans than U.S. banks overall. Foreign banks increased the assets of their New York-based branches and agencies by 21 percent over the year, and increased loan holdings of commercial and industrial loans at a higher rate of growth. Consolidation among foreign banks has reduced slightly the number of foreign branches and agencies in New York State.
New York State-headquartered credit unions also increased assets over the year, but net income at credit unions was under pressure from an increase in cost of funds over the year. RBD
Who’s Banking on Rockland?
The following is a list of banks, investment firms, and other financial institutions that call Rockland home.
• Bank of America • Hudson City Savings • PFCU • Chase • Hudson Valley Bank • Provident Bank • Citibank • JP Morgan Chase • Sound Federal Savings • Citizens Bank • Key Bank • TrustoCo Bank • Commerce Bank • M&T Bank • Union State Bank • Emigrant Savings Bank • Merrill Lynch • Wachovia • First Union Securities • Morgan Stanley • Washington Mutual • HSBC • North Fork Bank • Wells Fargo
Banking Resources
Rockland Economic Development Corp
Revolving Loan Fund Program - Small businesses in Rockland and Westchester Counties that cannot qualify for traditional bank financing are urged to consider an economic development-based loan program. The Westchester/Rockland Revolving Loan Fund Program was established and funded by New York State's Empire State Development and is locally administered by Rockland Economic Development Corporation (REDC). The funds are specifically available to only those small businesses that have been declined by traditional lending institutions, or would otherwise not qualify for a loan or for the full amount requested. Business loans start at $2,500, and can be used for a broad variety of purposes such as working capital, inventory and equipment.Phone: (845) 735-7040.
Website: www.redc.orgNew York Business Development Center
NYBDC is a complement to conventional banking, working in partnership with banks to provide term loans, many of which do not meet the requirements for traditional financing. They provide innovative loans to small and medium-size businesses; assist partner banks in making such loans; and, particularly, assist minority and women-owned businesses by offering credit opportunities not otherwise available to them. Community partners include both the Rockland Business Association (www.rocklandbusiness.org) and the Rockland Economic Development Corporation, (www.redc.org) along with most of the banks in the county.41 State Street
Albany, NY 12207
Phone: 518-463-2268
Website: www.nybdc.comSmall Business Development Centers
Entrepreneurial Development - The Office of Small Business Development Centers (SBDC) provides management assistance to current and prospective small business owners. SBDCs offer one-stop assistance to individuals and small businesses by providing a wide variety of information and guidance in central and easily accessible branch locations. The program is a cooperative effort of the private sector, the educational community and federal, state and local governments and is an integral component of Entrepreneurial Development's network of training and counseling services.New York SBDC
Mr. Jim King, State Director
State University of New York
Corporate Woods, 3rd Floor
Albany, NY 12246-0001
Phone: 518-443-5398
Fax: 518-443-5275
E-mail: j.king@nyssbdc.org
Website: www.nyssbdc.orgEmpire State Development
Minority & Women Owned Businesses - New York State's Division of Minority - and Women-owned Business Development (MWBD) helps the state's minority and women's business community to access all the services offered by Empire State Development (ESD) including access to capital and the Minority and Women Revolving Loan Trust Fund Program that provides low-cost financial assistance to minority- and women-owned businesses that are unable to access traditional financial services.Phone: 1-800-STATE-NY (1-800-782-8369)
Website: www.nylovebiz.com
