A New Jersey thrift recently sent out a press release that sounded like it should have been a personal ad in a magazine.
"We are searching for an acquirer who will recognize the value of an efficient and innovative funding source and be able to leverage the critical mass pioneered by Premium Federal Savings Bank with capital and assets," the Gibbsboro thrift's release began, quoting president and CEO Michael D. Devlin. "An ideal acquirer could be a nonregulated financial entity with a need for funding, direct marketing skills, or a federal charter."
Premium is a closely held thrift with $300 million of assets. It's an unusual institution because it has no branches and customers bank through the mail, fax and phone. Its customers are generally located in the greater Philadelphia area.
Sometimes customers get confused because they think Premium has branches. On one occasion, a man calling from his car phone in Florida asked for the location of the nearest branch because he wanted to deposit $10,000.
Mr. Devlin is gambling that a buyer would increase the company's asset size and keep present management.
"We think we have the ability to take this to a $1 billion bank in three years," he said. "We think that we could go to much greater geographic diversification but we don't have the capital to do that."
Premium has had one nibble - from a regional bank a couple of months ago - but the deal fell through, Mr. Devlin said.
If buyers don't come knocking, Mr. Devlin said, Premium plans to raise $10 million to $12 million in an offering. His main interest, though, is finding a suitor.
Said Mr. Devlin, "'Wanted, wealthy suitor with lots of capital to let us grow.' I guess that is sort of the gist of it."
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To mark its 125th birthday, Lockport (N.Y.) Savings Bank unleashed a bear on the Buffalo area.
A 5-foot, 10-inch, 225-pound chocolate brown mascot named Ellis B. Bear will represent the western New York thrift at different community events during the coming months, sporting a bright blue silk vest and red bow tie. The bear's name comes from the bank's acronym, LSB.
Imagine the brainstorming session that came up with this marketing strategy, or even the board meeting that approved it.
In any case, the use of a person in a bear suit by $955 million-asset Lockport is probably unique among community banks, said David M. Partridge, director of the financial institutions practice at Towers Perrin in San Francisco.
"If it isn't unique, it's very close," he said. "I can't imagine (BankAmerica Corp. chairman) Dick Rosenberg dispatching a bear to Bank of America branches. It does at least raise in my mind that someone in the bank has a sense of humor."
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When the Mancelona, Mich., branch of $23 billion-asset First of America Bank Corp. was temporarily shuttered due to a nearby gas explosion earlier this year, the regional was bailed out by a community bank.
The manager of a FMB Northwestern Bank branch a mile down the highway let First of America set up shop in her lobby for three days.
"The first thing that popped into my head is they need help and I'm going to help them," Muriel Hart said.
The $130 million-asset FMB Northwestern, based in Boyne City, is owned by $2.7 billion-asset First Michigan Bank Corp.
