Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, February 28, 1992 TAG: 9202280355
SECTION: BUSINESS PAGE: B4 EDITION: METRO
SOURCE: DAVID M. POOLE STAFF WRITER
DATELINE: LENGTH: Medium
OUT OF THE WOODS, NOW, LITTLE BANK READY TO GROW
Last year, the Bank of Shawsville was so busy taking care of problem loans that it was in no position to expand.But merger with a Wythe County bank gave the Bank of Shawsville - now known as Premier Bank Inc. - the loan capacity and capital to look east toward the more competitive Roanoke Valley market.
"The merger allowed us to immediately look at those options," said Luke Lively, senior vice president of Premier Bank. "But we do not want growth at all costs. We want to expand steadily with an eye to long-term growth and profitability."
In 1992, Premier Bank will look at moving beyond its West Salem branch and pushing deeper into the heart of the Roanoke Valley, Lively said.
Premier Bank - the combination of the Bank of Shawsville and the Bank of Speedwell - has $148 in assets with 9 branches from Rural Retreat to West Salem. It is part of Premier Bankshares, a Tazewell-based holding company with $428 million assets.
Premier Bank Inc. earned $1.9 million in 1991, a 1.28 percent return on assets, according to unadited figures released by the bank.
Some $223,000 of the income came from a one-time tax benefit from the Shawsville-Speedwell merger. The new bank was able to charge the Bank of Shawsville's losses from the late 1980s against profits by the Bank of Speedwell, said Jack Chambers, holding company president.
Lively said the merger also makes good sense because of the new bank's increased lending capability and the efficiency that will result from combining two small banks.
For Bank of Shawsville customers, the most noticeable change was the removal of raised letters that spelled "Bank of Shawsville" on the main office building. Those letters were donated to the local historical society.
Lively said there were few complaints about the name change because most customers thought the merger would enable the bank to put its problems behind it.
In 1989, poor management and bad loans nearly forced the Bank of Shawsville into receivership. The bank was saved by Premier Bankshares, which infused enough capital to allow the Bank of Shawsville to regain profitability last year.
"The experience we got out of it makes us a lot better bank," Lively said.
Premier Bank Inc. has taken steps to deepen its role in the community by contributing money for lights at the Shawsville High School football field and starting high school scholarship funds at Glenvar and Shawsville.
"We're still a community bank," Lively said.
\ PREMIER BANK INC. AT A GLANCE
Formerly: Bank of Shawsville and Bank of Speedwell
President: Thomas G. Anders
Assets: $154 million Loans: $102 million
Return on assets (1991): 1.28 percent
Branches: Dublin, Fort Chiswell, Pulaski, Rural Retreat, Shawsville, Speedwell, West Salem and Wytheville (2) Part of Premier Bankshares
Corp.