providers. A growing number of community banks have diversified away from traditional commercial banking in recent years. For some, new lines of businesses in an array of subsidiaries churn out most of their profits. For example, at least six community bank holding companies in the country have nonbank subsidiaries that generate more than 12% of net income, an American Banker analysis shows. "Banks are looking for additional sources of revenue outside of traditional banking," said Jim Krumm, chief operating officer of Mountain Parks Financial Corp. of Denver. "There's no doubt this is increasing at most banks." Mountain Parks' nonbank subsidiary is a data processing unit that provides nearly 4% of the company's net income. For the moment, the subsidiary serves only the banks of the $430 million-asset company, but it may soon take on outside customers, Mr. Krumm said. Topping the list is Shorebank Corp. of Chicago, whose nonbank subsidiaries made up 62% of the company's consolidated net income for the six months ending June 30, according to an analysis of data supplied by Sheshunoff Information Services. Shorebank has numerous nonbank subsidiaries, ranging from a real estate development company to a consulting unit. It also has several nonprofit subsidiaries serving the inner-city needs of Chicago. Such diverse enterprises are not new for the company, which established its current structure when it was founded in 1973. Ruan Financial Corp. of Des Moines, Iowa, came in slightly behind Shorebank, with 59% of its consolidated net income coming from nonbank sources. Officials there could not be reached for comment. "I'd say the better ones are looking at these sort of things," said Vincent N. Schmitz, chairman of Greater Metro Bank Holding Co., a $250 million-asset institution in Aurora, Colo. "The environment is changing dramatically, so we really don't have a choice." Greater Metro has a mortgage company, an insurance company, and a data processing unit that together account for 12% of the company's net income. The data processing unit serves three outside banks in addition to Greater Metro's internal needs. Dennis E. Barrett, president of the FirstBank Holding Co. of Colorado, Lakewood, said ongoing deregulation has been another factor in sparking bankers' interest in these new areas. About 8% of FirstBank's net income comes from nonbank sources.

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