The two state banking trade groups in North Carolina appear likely to merge within the coming months, a move reflecting the consolidation in the state.
"There have been discussions, and they are continuing," said Nicholas W. Mitchell, chairman of the Community Bankers Association of North Carolina and chief executive of Piedmont Federal Savings in Winston-Salem.
Others familiar with the situation predicted a merger between the North Carolina Bankers Association and the Community Bankers in the first half of next year. Both sides seem to support the concept and need only to work out the details, such as who will become president of the newly merged association, they said.
"Should the decision to merge be made, it could be accomplished in a matter of months," said Paul H. Stock, general counsel for the Community Bankers. "It's not as complex as two banks merging."
Thad Woodard, president of the Community Bankers Association for the last 18 years, has been mentioned as the front-runner to head the group.
"That's what the Charlotte Observer said, but I don't know," said Mr. Woodard. "If the merger happens, I hope we'll all have the opportunity to continue."
Small committees from North Carolina Bankers, a group that includes the big banks such as Charlotte-based NationsBank, and the Community Bankers met last Friday and will likely take a concrete merger proposal to their respective boards soon.
The effort to bring the two groups together stems primarily from the bank consolidation in North Carolina and the recognition that the shrinking industry will unlikely be able to support two trade groups in the future.
North Carolina now has just 52 state banks, about a 20% decline from just five years ago, according to the state's banking department. There's a total of 62 banks in the state.
The other primary reason for the move is to present a more unified voice to legislators, though there have been few disagreements between the groups in the past, Mr. Mitchell said.
The impetus for the talks, which began about 18 months ago, came from the North Carolina Bankers Association. The group has lost a number of members to the Community Bankers Association in recent years primarily because it does not offer all the services the community bank group offers, observers said.
The big-bank group focuses mainly on legislative issues because many of its members, such as NationsBank, do not require those other services, observers said. The president of North Carolina Bankers Association could not be reached for comment.
All except 17 institutions in the state are members of both groups.
