Your choice

New Mexico Business Journal, August, 2000 by Kent Paterson

Finding a bank that's a good fit is no easy task. The services, attitudes and philosophies available are nearly breathtaking.

Mergermania changed the face of New Mexican banking in the 1990s. While some banks were bought out by large out-of-state institutions, others, locally owned, grew larger in the reshuffling. Today all are attempting to carve out market niches in a banking environment undreamed of by their predecessors just a generation ago. And most are competing for business around three simple concepts: customer service, convenience and computer access. The state's banks, however, have different ways to skin these cats. Here are a few representative snapshots.

Bank of America

Although it holds the status of the largest bank in New Mexico with $2.9 billion in deposits, Bank of America isn't snoozing. "Our goal is to deliver the full capabilities of the bank to New Mexico and El Paso and expand and deepen our customer relationships," says Jennifer Thomas, president of Bank of America New Mexico-El Paso. "We want to acquire customers. That's why we come to work everyday. We want to exceed our clients' needs. We want to be an important partner in our community."

Thomas flinches at the term "cookie-cutter banking," which she says some competitors unfairly tag on Bank of America. Her bank, says Thomas, has a diverse range of services, offering, for example, 20 different home equity lines. And being a large institution, BofA gladly handles financial services and investment management. Indeed, competitors in this market segment are the Morgan Stanley Dean Witters and Merrill Lynchs of the world.

Because of the high-powered competition, Thomas says her bank is being cautious in expanding the number of branches in her region. However, the bank also conducts business in Ciudad Juarez and the Mexican interior. For the immediate future, Bank of America is spearheading innovations in 21st century Internet banking. "We compete with relationships," remarks Thomas. "It gets down to relationship banking, and we've expanded our product."

Bank of Albuquerque

Owned by an Oklahoma-based holding company, the Bank of Albuquerque (is it the "little" BofA?) was formed in December of 1998 from assets once controlled by the Bank of America (the "big" BofA). Focused until now on the Albuquerque metro area, Bank of Albuquerque plans to open a commercial office in Santa Fe. "We're trying to touch on both worlds, "says President Paul Sowards, who until recently was president of the big BofA for New Mexico and El Paso. "Community banking, definitely, but with access to sophisticated financial products as well. In a nutshell, that's our approach." In contrast to a Wells Fargo or BofA, Sowards says his institution generally doesn't manage larger corporate accounts, serving instead small and middle-sized clients. "Our corporate philosophy is to go to communities and conform it to the community it is in," he says.

New Mexico Bank & Trust

Founded in May 1998, New Mexico Bank & Trust has branches in Albuquerque, Rio Rancho, Clovis, and Melrose, as well as $225 million in assets. Says CEO Greg Leyendecker, "We're doing something right." As a smaller organization, NMB&T also concentrates on small and medium-sized accounts. "We're growing every day, and our mission statement is to provide the best customer service in the Southwest," he says.

Farmers & Stockmens Bank

Nestled in the far northeastern corner of the state, Farmers and Stockmens Bank of Clayton celebrates its 80th anniversary this year. Serving customers in a five-state region of New Mexico, Texas, Colorado, Kansas, and Oklahoma, Farmers and Stockmens--as the name Suggests--is a decidedly agriculturally oriented bank. Bought out by Denver-based investors in 1992, the bank nevertheless prides itself on doing business the way it has done for decades--with a personal touch.

President Larry Fluhman says a smaller bank like his finds it difficult to compete with the Banks of America in residential and car loans, but can sit down with a client and come up with customized packages that larger banks won't touch, Such flexibility, affirms Fluhman, ensures both a happy customer and return business. "We probably have had the same clients for 40 to 50 years," he says. "We have a lot of long-time customers. It's not uncommon to have a grandfather, father and son."

First State Bank

Projecting the neighborhood banking image is a cornerstone of a rapidly expanding First State Bank "What we want to be is the that hometown independent bank in northern New Mexico, and we just want to do things well," says CEO Mike Stanford. "And if we employ that strategy, we will be successful." From 1990 to 2000, First State grew from 3 to 18 branches. Customers can find outlets in Taos, Questa, Santa Fe, Belen, Albuquerque, and Los Lunas. During the same period, the bank's assets soared from $40 million to $600 million. Stanford credits the customer dislocations caused by bank mergers for boosting the fortunes of his own locally owned (and publicly traded) bank.