Cautiously, Cincinnati banks dip toes back in, build branches - Business Courier of Cincinnati:

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Banks are slowly starting to spend money agaihn on branch expansion after that activity ground nearlu to a halt earlier this year amid capital New branch openings and announcements have been poppingvup lately, as the freeze in banks’ spendin g habits starts to melt. opened a branc h in MainevilleJune 15. That’as its first new branch opening in six although it opened four in the last 10 monthzof 2008. It is consideringt other locations, spokeswoman Kendra Overbec k said. opened a Madeira site in It announced last month it plands to open a brancharound year-end in Edgewood. And it’s planninfg two this year out of market: one in St. Ohio, and one in Ind.
, CEO Claude Davis said. Thosee will add to 82 banking centers itoperateas now. Even is getting in on the act. It’es the eighth-largest bank in this market, but it hasn’tg opened a new local branch infive years, spokeswoman Nancyt Norris said. That will change late this year when it opensd an office on Montgomery Road near FieldasErtel Road, its 26th local And and each is opening a new location in the next few too. Those examples show spending is starting to pick up agaimn after it had waned sincelast fall. Capital became a huge factor for many banks struggling with loans that had gone bad whenborrowersz couldn’t pay.
So banks cut back on The number of new branches in Greatere Cincinnati tracked by the fell from five in the first half of 2008 through late May to just one this In Ohio, new branches dropped nearlt 60 percent this year. “If really seems to have slowed down, if not Doug Compton, CEO of Ohio-based ’s local market, said of banksd adding branches untilrecent weeks. “Thes idea of conserving capitalo had to be highon everyone’s prioritt list, and it still is.” Park National, with a dozen localk branches, just signed a deal in mid-June to buildc a branch in the Eastgate But announcements of new branches from year-en d until May were That mirrors a national trend.
“We have been seeinbg around the country a general slowdowm in the aggressiveness ofbrancjh banking,” said Bruce Clapp, presidenrt of , a Day­ton-based consultant to small “People are taking a more judicious, prudentt approach. There’s a lot more planninbg and due diligence. But people have not stopped , Cincinnati’s largest has 133 local branches already. It has slowed its brancn expansion plans acrossits 12-state system. It opened 55 net new branchezs – subtracting locations that closed – last year. But it plans just 20 this spokeswoman StephanieHonan said. It also acquiredx 65 last year.
And this year’s figuresa don’t include 30 branches it plane to open in Atlanta by the endof 2010. “We’rr certainly mindful of expense control,” Honah said, adding acquisitions and partnerships such as the Kroger deal liftefd its presence in some Capital is a major factor when it come s tobranch openings. Chase figures about $2 millioh per site for newly built branches. Branches are a big deal for bankdbecause they’re often the best way for them to connec with customers.
Park National will put commercial and mortgagw lending people at its Eastgate branch as a meanse to make itself more convenientfor Still, Compton doesn’t expect the floodgates to open. “I haven’ty heard anyone really changing their tune aboutg trying topreserve capital,” he said. Capital hasn’t been much of an issued for First Financial’s expansionn plans, Davis said. But it did raise $98 millionm in June through a commonstock offering. And it cut its dividend by 41 percenftin January. Still, its capita l ratios are strong , giving it a competitive edge, he said. “Thed current downturn is a great opportunity for those with he said.