
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, November 26, 1993                   TAG: 9311250166
SECTION: BUSINESS                    PAGE: A-13   EDITION: METRO 
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

THIS BANK'S OUTTA HERE

First Century Bank today closes its only Roanoke Valley office after 2 1/2 years, saying it could not compete with statewide banks. The office shuts down at 2 p.m.

But First Century plans to open a larger office next month in Wytheville, where it has its headquarters.

And on Monday, NationsBank will move its office from a block away into the First Century building at Williamson and Airport roads.

Jeffery Forlines, president of First Century, said the sale of the building has closed. NationsBank will start moving in at 6 p.m. today.

NationsBank has done some interior remodeling and installed a new drive-up automated teller machine, Forlines said.

First Century Bank, which opened in Roanoke in May 1991, has not accepted any new business since Aug. 27, when it announced its plans to close.

At its peak, Forlines said, the branch had $8 million in deposits. But that, he said, fell short of what it had projected it would attract from Roanoke customers.

In an earlier letter to customers, Forlines said the established presence in Roanoke of major Virginia banks "created a difficult environment for a new market entrant to compete effectively."

Forlines said First Century has deposits of $31 million at its Roanoke, Wytheville and Fort Chiswell banks. That would suggest that more than $25 million is on deposit at its two Wythe County offices.

When First Century entered the Roanoke market by buying the assets of a failed bank, company officials made clear their primary intent was to establish a Virginia foothold and the right to open in Wytheville.

First Century is a subsidiary of Pocahontas Bankshares Corp. of Bluefield, W.Va. Its lead bank, First National Bank of Bluefield, had solicited loans in nearby parts of Virginia. But under banking laws, it could not take deposits from outside its home state.

Last spring, Pocahontas bought a former Dominion Bank office in Fort Chiswell in Wythe County and began operating it under the First Century name.

First Century's checking and savings account customers have until today to make other arrangements for their banking needs.

Forlines said First Century retained about 70 percent of its certificate of deposit business in Roanoke, so the bank is pleased at the number of customers who have chosen to bank with First Century from its Wytheville office.

First Century waived the early withdrawal fee for customers who chose to bank elsewhere, but they would have to accept today's lower rates from other banks.

The bank will retain its loan business, servicing the accounts from Wytheville.

Of its 12 Roanoke employees, eight have found jobs outside the company, two will transfer to First Century in Wytheville and the others were offered severance packages, Forlines said earlier.

Karen Colaw, a spokeswoman for NationsBank, said the new premises offer its customers more parking, a drive-up ATM and a drive-up night depository.

Its own branch has been at 5102 Williamson Road. The new office will be at 5002 Williamson.

Colaw said NationsBank will hold a grand opening Dec. 10, about two weeks after it moves.

by CNB