New Orleans Financial Briefs: July 9, 2007

New Orleans CityBusiness, Jul 9, 2007 by Greg LaRose

First Bank and Trust President Mickey Brown is honoring the pledge he made last year to expand his franchise statewide. His plans call for up to 48 new branches throughout Louisiana within the next five years.

First Bank and Trust will open three branches by the end of the year with modular buildings at North Park Business Center in Covington, Lapalco Boulevard in Marrero and Jefferson Highway in Baton Rouge. The Covington and Baton Rouge locations are expected to open Aug. 1 and the Marrero office by Nov. 1, Brown said.

Brown envisions up to three more branches in Baton Rouge, additional growth on the North Shore and expansion in Tangipahoa Parish through People's Bank, another institution under First Trust Corp., the holding company for First Bank and Trust.

"For the last two years, we've had a huge population shift," Brown said. "Economists are projecting that the population along Interstate 12 from the Mississippi-Louisiana border over to Baton Rouge could grow to another 1 million people over the next decade or so. We are moving in the direction of the population growth and we need to do that to give return to our stakeholders, our employees and customers."

Other Louisiana markets First Trust is targeting include Lafayette and Houma, where FBT already has a loan production office. Shreveport "is also on our radar site," Brown said.

In addition, acquisitions are being evaluated in the San Antonio and Dallas markets, Brown said.

Although the First Trust Corp. growth strategy is concentrated outside New Orleans, Brown said the institution remains committed to its home base. It is negotiating property purchases on Veterans Boulevard in Metairie and Uptown, he said.

First Trust Corp. is also the holding company for Winona, Miss.- based First Bank and Trust of Mississippi. First Trust has combined assets of $755 million with the flagship New Orleans institution accounting for nearly $582 million.

Liberty Bank enters Texas with Houston loan office

Hoping to attract former New Orleans customers who have moved to Houston since Hurricane Katrina, Liberty Bank and Trust acquired a residential and commercial mortgage firm in Houston.

Stephens Development Inc., operating as SDI Mortgage, is now a Liberty loan production office. Liberty President and CEO Alden McDonald said the office will become a deposit branch.

Former Houston Rockets player Joseph Stephens founded SDI, which employs a staff of about 20, which McDonald said he will retain.

Liberty Bank now has 16 offices in three states. It operates 12 branches in Louisiana and three in Mississippi.

McDonald is considering establishing Liberty's presence in other cities where New Orleans residents migrated in large numbers post- Katrina.

Fidelity relies on allies

for hurricane backup

Fidelity Homestead Savings Bank is revisiting its disaster recovery procedures with the heart of hurricane season remaining and has forged alliances with three other banks to service customers if a storm forces lengthy evacuation or displacement.

Fidelity customers can conduct business at Ouachita Bank branches in Monroe and Shreveport, First Federal Bank of Louisiana offices in Alexandria and Lake Charles, and Home Bank in Lafayette. Fidelity has offices in Baton Rouge and Hammond.

"Creating alliances such as this goes both ways," said Fidelity CEO and President Boyd Boudreaux. "Should a natural disaster affect their area in any way, Fidelity will be there to help them as well."

Customers with questions about their bank accounts or abilities can contact Fidelity customer service at (800) 220-2497 or go to www.fidelityhomestead.com.

Fidelity officials will rely on the Internet to keep in touch with bank customers and employees. The bank launched an interactive Web site in April for account information and resources in case of service interruptions. Executive management is also equipped with satellite phones.

"We all learned the hard way a few years ago that when you can't communicate to your forces, you're stuck," Boudreaux said. "Now we have the safeguards in place to serve our employees and our customers and keep them informed of what's happening."

Fidelity Homestead, founded in 1908, operates 13 branches in southeast Louisiana with $807 million in assets as of March 31.

Flooding at its original Baronne Street headquarters from Katrina forced the company to move its executive headquarters to Place St. Charles.