Smaller banks in LI hoping for more commerce

TD Financial Group's decision to acquire Commerce Bancorp might have led to some upset stomachs at the company's corporate headquarters. But for regional banks on Long Island, the word was met with loud cheers.

"The news of the TD and Commerce merger is an early holiday gift for us," said Tom O'Brien, president and chief executive of State Bank of Long Island in New Hyde Park.

O'Brien said his company will add Commerce customers once the merger is complete, because most residents want to bank with someone local. In fact, O'Brien said some Commerce customers and employees have already contacted State Bank because they're looking for stability.

While State Bank takes a patient approach, Community National Bank in Great Neck is seeking unhappy customers nervous about not only TD's takeover, but Capital One's buyout of North Fork Bank.

Community National Bank is running advertisements stating, "while other banks are changing their name, we'll be changing your mind," said Stuart Lubow, chief executive of CNB, adding that Chase's acquisition of Bank of New York branches has brought customers to CNB.

Lubow said Commerce has had a strong, clean record of customer service and he, for one, won't miss the New Jersey-based bank if the name is changed to TD.

"Commerce has done a very good job of being a larger institution that focuses on customer service and community banking," Lubow said. "They were a real competition to us."

Lubow and other executives said there's a growing trend of customer-friendly banks getting acquired by large institutions. The company then implements cookie-cutter products and stiff customer service.

Community banks, on the other hand, are able to tailor products to a specific customer's needs, small bank executives said.

But Christopher Giamo, Commerce's market president for suburban New York and Connecticut, said banks are going to be disappointed, because the acquisition won't hurt Commerce's customer service.

"Our success will only be enhanced because we will have more products and services," Giamo said, adding that Commerce will be stronger because it will have more products to offer.

Giamo also said there are better employment opportunities at Commerce because of its aggressive branch-expansion campaign, which won't be curtailed because of TD's takeover. Commerce has 32 branches on Long Island, up from none in 2002.

"I would argue that there's more opportunity for growth and development at Commerce, and that means more compensation," Giamo said.

And at least one outsider isn't ready to write off Commerce yet. Douglas Manditch, chairman of Empire National Bank, said Commerce's customer service, which includes seven-day branch banking, will not erode overnight.

"It may be a little early to think that they will make the same mistakes as everyone else," Manditch said.

Copyright 2007 Dolan Media Newswires
Provided by ProQuest Information and Learning Company. All rights Reserved.