SARATOGA SPRINGS, N.Y. -- Thomas F. Goldrick Jr., chairman and chief executive of State Bank of Long Island in New Hyde Park hasn't been this excited about banking in a decade.
What's lifted Mr. Goldrick's spirits? A series of shake-ups of middle management at several big banks operating on Long Island has meant more customers for State Bank and a bevy of seasoned bankers for the taking.
"Our lenders are extremely busy," said Mr. Goldrick, who was attending the New York State Bankers Association's annual meeting here. "You can see the pipeline is starting to fill up. It is easy for us to pick up business. How long that will continue I don't know."
State Bank's forte is making loans to manufacturers, fabricators, and distributors, a niche many banks shun because such loans are complicated and take a lot of work to put together. Loan officers also have to understand the dynamics of the businesses they are lending to.
"We just love them," Mr. Goldrick said.
Mr. Goldrick said what gives him the edge on the bigger banks is that his loan officers know the customers and their businesses.
"It is access to senior management and decision makers," Mr. Goldrick said. "We have gone toe-to-toe with some of the money-center banks, and we win almost every time."
The banks Mr. Goldrick competes with include National Westminster, Bank of New York, Chase Manhattan, and Fleet.
The management shake-ups -- which include layoffs - among his competitors have also helped. Mr. Goldrick said he's been able to pick up experienced loan officers from the larger banks who were-either cut from their job or have become disgruntled.
Where State Bank falls short is that it doesn't offer as many services as the larger banks. Mr. Goldrick said larger banks can retain customers because they offer technology that allows the customer to move funds by telephone or computer.
"We just cannot compete on the technology side," Mr. Goldrick said.
State Bank grew to $493 million in assets in 1993, up 16.3% from a year ago. Loans were up about 5% for the same period to $231 million, and deposits were $368 million, down from $392 million. State Bank earned $3.7 million for the year and returned 0.78% on average assets and 11.28% on average equity.
James P. Menzies, president and chief executive of Key Bank of New York, says it's the community banks that are his toughest competition.
"They beat us on individual transactions," he said. "Where we find less competition is with our peers."
To make life tougher for community banks, the $14 billion-asset Key Bank began in recent years to give branch officers more authority to make loan decisions.
Mr. Menzies said that where Key finds little competition with the small banks is on the technology side of the business. The company's offerings include investment services and leasing services - which smaller institutions don't offer, because they cost too much.
The New York State Bankers Association is celebrating its 100-year anniversary by commissioning a book on the history of banking in the state.
The book, written by J. T. W. Hubbard, is titled, "For Each, the Strength of All." It will be published by New York University Press in the fall.
Michael P. Smith, executive vice president, gave bankers at the association's annual meeting a sneak preview of the book in a slide show. He said the book is more a story of the people who created the banking industry than it is about banks.
"This is the story of Alexander Hamilton ... who brought the Bank of New York into being," Mr. Smith said.
