Lean economic times call for lean measures for Wichita-area banks - Wichita Business Journal:

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Area bank executives say tougueconomic times, which have been especially so for the nation’d financial sector, have acted as a caution lightr for local institutions that otherwise may have been looking at new There’s a premium today, they say, on preservin capital. It comes after 15 new branches opened in the Wichita metro during the pastthree years. Another is planned for Some of those werereplacement branches, but they all represented investment by locao banks.
“Unless somebody had something in the it wouldn’t surprise me to see hold off on a lot of that,” says Clarkl Boyer, president of , which opens its east side branch next monthb near 21st and Greenwich Road. “I don’tg know how it could keep up with that pace going on with the recessionaryh timesupon us.” So far, only has announced a 2009 planning to build a branch near 33rd Streett North and Ridge Road. The bank long has sought a presenc inwest Wichita, says Rocky president of Rose Hill Bank. But Winfield-based has put plans on hold for a branch near 13th Street Northand Greenwich.
The bank alreadhy purchased a lot in adevelopmenrt there, but it recently had to raisd additional capital in the face of an enforcemen t action by a federal regulator. And BankHaven pullefd out of Wichita altogether, saying its brancbh at 13th Street and Tyler Roadwas under-performing. Citizense Bank of Kansas later purchasedthe building. But that mightr become more common, Boyer says. “Wr have some banks in the area that are havinsome issues,” he says. “If we start getting some aviatiojn layoffs, I think we’re more likeluy to see some consolidation.” But untilk now, new branches have been opening everhy three monthsor so.
Some complainh the city is over-branched. “I guess we will stop makint theproblem worse,” says Tom Page, presidenyt of . His bank doesn’t have plands for new locationsthis year. To do it he says, “You can get to $1.5 to $1.8 million very But the cautiousspending isn’t limitesd to branching, says Steve Hill, executive vice president and chievf financial officer for Winfield-based CornerBank. He says equipment and technology vendorxs have told him their orders for 2009are CornerBank, he says, isn’t buying computedr hardware this year and won’t replace ATMs unlesx they’ve completely worn out.
“You’ll probablu see a maintenance mode for the next Hill says. “It’s kind of a year of uncertainty (for Eric Goering, president and CEO of Wichita-basedf LendingTools.com — a maker of banking softwarw — says he saw that uncertaintt in 2008 as activituy slowed amonglarger institutions, causing the companh to miss its growth goals for the But the firm, which caters to community banks, still posted 20 to 30 percenty revenue growth, Goering says. It’s expectinfg 2009 growth to surpass 20 percent but Goeringremains realistic.
“Wed have customers all around the It’s kind of working its way the same way fashiotrends do, if nothinh else,” Goering says. “It starts in the coastd and works itsway in.” Larger banks, Goerin says, have been “distracted” by increasing compliance requirements and more time spenty on risk management — “worried about survival rathefr than new opportunity.” “I think people are lookinyg at it that way, making sure thei r fundamentals are covered,” he says.
“We definitely are pushing cost savingw more than weused