Premier Bank has finally arrived in Richmond. And now Darius Johnson has to think twice when he answers the phone.
Before last Friday, Johnson was president of locally based Consolidated Bank and Trust, a bank name that was rich in local history.
But the April 8 merger of Consolidated and its four sister banks into a new West Virginia-based bank brand gives the century-old bank a new identity and more clout for potential expansion in the region and leaves its employees with a new name to get used to.
“It still feels weird for me to say it,” said Johnson, who is now president of the Consolidated Division of Premier Bank.
Premier Bank is the newest incarnation of five subsidiary banks owned by Premier Financial Bancorp of Huntington, W.Va. Temporary signage is now up at Consolidated’s headquarters on First and Marshall Streets.
“Officially we are Premier Bank,” said Bob Walker, CEO of Premier Financial.
The company devised the plan for Premier Bank last September in part to create a flagship brand for its various subsidiaries. The plan is also targeted at potentially helping Premier rid itself of some of Consolidated’s baggage.
Consolidated was forced into a written agreement with regulators last summer after too many problem loans deteriorated its capital base. While Premier Financial has since remained a healthy holding company, restrictions attached to Consolidated’s written agreement have prohibited the company from paying shareholders a dividend.
Bringing Consolidated under Premier might help that pesky agreement go away faster by folding it into a single, well-capitalized charter that isn’t tarnished in regulators’ eyes.
As the Premier Bank signage begins to pop up at its branches here and in Hampton, the historic Consolidated name is taking a back seat. But it won’t become extinct.
Naming its local operations the Consolidated Division of Premier Bank will help preserve a name that has roots in Richmond dating back to 1903. Maggie Walker, the nation’s first female bank CEO, founded the bank as St. Luke Penny Savings Bank in 1903. Consolidated was also at one time known as the oldest continually African American-operated bank in the country.
“The spirit of that history will continue to live on,” Johnson said.
The new brand also will arm Consolidated with products that should help it capture more customers from outside its historically majority-African American customer base.
“It allows us to offer some new products and services and appeal to a whole new universe of customers,” Johnson said.
From a competitive perspective, entering the Richmond market with a fresh brand and stable capital backing may also open doors for potential local expansion.
“I think this is one of the emerging markets in the Premier franchise,” Johnson said. “The name isn’t a familiar name here locally, so we have a chance to build a brand. I think we have some room to grow, and I’m sure there will be opportunities to open new branches down the road.”
Premier Financial is a $1.1 billion bank holding company that prior to the merger had eight bank subsidiaries. Premier Bank is now an $800 million institution with 22 branches across Virginia, West Virginia, Maryland and Washington.
On its own, Consolidated was profitable in 2010, reporting net income of $878,000 for the year. It had $76 million in total assets at year’s end with $44 million in loans. About $7 million of its loans were in past due and nonaccrual status at the end of the year.
The bank also ended 2010 with $68 million in deposits. Consolidated controlled about 0.1 percent of all deposits in the Richmond market, according to the most recent FDIC figures.
Now the challenge is to get the new name out there.
“That’s something that happens in our everyday interactions,” Johnson said.
Consolidated’s 21 employees will remain on under the new brand.
“That consistency I think gives our customers some comfort,” Johnson said. “We’ll leverage that to introduce the new brand.”
Michael Schwartz covers banking for BizSense. Please send news tips to [email protected].
Premier Bank has finally arrived in Richmond. And now Darius Johnson has to think twice when he answers the phone.
Before last Friday, Johnson was president of locally based Consolidated Bank and Trust, a bank name that was rich in local history.
But the April 8 merger of Consolidated and its four sister banks into a new West Virginia-based bank brand gives the century-old bank a new identity and more clout for potential expansion in the region and leaves its employees with a new name to get used to.
“It still feels weird for me to say it,” said Johnson, who is now president of the Consolidated Division of Premier Bank.
Premier Bank is the newest incarnation of five subsidiary banks owned by Premier Financial Bancorp of Huntington, W.Va. Temporary signage is now up at Consolidated’s headquarters on First and Marshall Streets.
“Officially we are Premier Bank,” said Bob Walker, CEO of Premier Financial.
The company devised the plan for Premier Bank last September in part to create a flagship brand for its various subsidiaries. The plan is also targeted at potentially helping Premier rid itself of some of Consolidated’s baggage.
Consolidated was forced into a written agreement with regulators last summer after too many problem loans deteriorated its capital base. While Premier Financial has since remained a healthy holding company, restrictions attached to Consolidated’s written agreement have prohibited the company from paying shareholders a dividend.
Bringing Consolidated under Premier might help that pesky agreement go away faster by folding it into a single, well-capitalized charter that isn’t tarnished in regulators’ eyes.
As the Premier Bank signage begins to pop up at its branches here and in Hampton, the historic Consolidated name is taking a back seat. But it won’t become extinct.
Naming its local operations the Consolidated Division of Premier Bank will help preserve a name that has roots in Richmond dating back to 1903. Maggie Walker, the nation’s first female bank CEO, founded the bank as St. Luke Penny Savings Bank in 1903. Consolidated was also at one time known as the oldest continually African American-operated bank in the country.
“The spirit of that history will continue to live on,” Johnson said.
The new brand also will arm Consolidated with products that should help it capture more customers from outside its historically majority-African American customer base.
“It allows us to offer some new products and services and appeal to a whole new universe of customers,” Johnson said.
From a competitive perspective, entering the Richmond market with a fresh brand and stable capital backing may also open doors for potential local expansion.
“I think this is one of the emerging markets in the Premier franchise,” Johnson said. “The name isn’t a familiar name here locally, so we have a chance to build a brand. I think we have some room to grow, and I’m sure there will be opportunities to open new branches down the road.”
Premier Financial is a $1.1 billion bank holding company that prior to the merger had eight bank subsidiaries. Premier Bank is now an $800 million institution with 22 branches across Virginia, West Virginia, Maryland and Washington.
On its own, Consolidated was profitable in 2010, reporting net income of $878,000 for the year. It had $76 million in total assets at year’s end with $44 million in loans. About $7 million of its loans were in past due and nonaccrual status at the end of the year.
The bank also ended 2010 with $68 million in deposits. Consolidated controlled about 0.1 percent of all deposits in the Richmond market, according to the most recent FDIC figures.
Now the challenge is to get the new name out there.
“That’s something that happens in our everyday interactions,” Johnson said.
Consolidated’s 21 employees will remain on under the new brand.
“That consistency I think gives our customers some comfort,” Johnson said. “We’ll leverage that to introduce the new brand.”
Michael Schwartz covers banking for BizSense. Please send news tips to [email protected].