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

DATE: WEDNESDAY, October 11, 1995                   TAG: 9510110063
SECTION: BUSINESS                    PAGE: B8   EDITION: METRO 
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

SOUTHEAST GROUP INVITING DIFFERENT BANK

A neighborhood group that has fought the closing of banks in Southeast Roanoke said this week it would rather recruit a new bank than oppose First Union Corp.'s plans to close its branch there.

The Southeast Action Forum won't fight First Union's plan to sell its branch at 616 Ninth St., said the organization's vice president, David Chopski.

"We don't want First Union," Chopski said. "If First Union wants to leave, we say 'good.'''

He said the group prefers to recruit a new bank for that location, preferably Roanoke-based Valley Bank.

Although the forum has yet to present its proposal to Valley Bank, that bank is receptive to the idea.

Chopski said the forum will ask the city to help "broker" another bank for the site.

First Union National Bank of Virginia, Roanoke-based unit of First Union Corp. of Charlotte, N.C., last month announced its intention to close the Southeast Roanoke branch as part of a program to operate fewer but larger branches. The bank's Vinton office at 124 Virginia Ave. is to be renovated and expanded.

Chuck Saldarini, president of First Union's Roanoke bank district, said again Tuesday that First Union is willing to sell the Southeast building to another bank, but it will not sell its customers' deposits or loans. He declined to reveal the amount of deposits and loans at the bank. Customers, of course, have the right to move their deposits and refinance loans with other institutions.

First Union said the building will be available in June after it completes a $1 million remodeling of the Vinton branch.

Guy W. Byrd Jr., president of Valley Bank, said he had not heard from the Southeast Action Forum, but said he would call its officers later this week.

"We consider it a real compliment that they are interested in talking with us," Byrd said.

He said Valley Bank is willing to look into the Southeast Roanoke site. Byrd said he would like to meet with forum representatives to discuss their hopes and needs, then determine whether his four-month-old bank can meet those expectations.

Valley Bank in May opened its main office at Church Avenue and First Street Southwest downtown and last month opened a branch on Starkey Road in Southwest Roanoke County. Byrd said the bank had not planned to open a third branch for several more years, but it would consider meeting a need now.

It's possible, Byrd said, that the deposits were not large enough to satisfy First Union but would be large enough to satisfy Valley Bank.

"It was enough to satisfy us," Saldarini said of the Southeast deposits. The reason for the closing, he said, is that First Union cannot justify having a branch a mile from its downtown office and 1.6 miles from the enlarged Vinton office.

Saldarini said he had no figures on the value of the Southeast branch. According to Roanoke real estate records, the land is assessed at $72,800 and the building at $108,200 for a total of $181,000. The lot contains 20,800 square feet. City records indicate the building was constructed in 1970.

It is the last branch bank still open in the Southeast neighborhood. Crestar Bank closed there several years ago.

First Union has said it does not have to seek regulatory approval to close the branch.

by CNB