Past Winner Stories
First Shares Bancorp
Full service banking is offered at First Bank, the wholly owned subsidiary of First Shares Bancorp, Inc. Services include business checking, consumer checking, Internet banking, Mortgage lending, wire transfers, consumer loans, commercial loans, Time Deposits, IRAs, TT&L Payments, Safety Deposit Boxes, Visa Credit Cards and Merchant Services. All products and services are backed by our old-fashioned customer service.
The Challenge
First Bank began as the Morgantown Bank established in November of 1899. In 1927, the bank was chartered as a State Bank, and the name became First State Bank. In 1995, First State Bank added a second location with the purchase of the former Bank One branch in Trafalgar. In March of 1999, the Board of Directors announced the addition of Jerry R. Engle to the bank in order for the bank to grow market share. Engle was met with several obstacles to say the least. To begin with, the old fashioned bank needed an overhaul on product and services. Debit Cards, Internet Banking, Cash Management Services and Mortgage Lending were just a few of the major product offerings Engle added in a short time period. Also, he and three other Citizen’s Bank affiliates took on personal risk by plugging an additional $1 million into the banks capital of their own money. Moreover, the bank’s net income had been on the decline over the recent years. It had not seen any real growth for over two decades. Technology and communication’s framework was not in place, and the bank needed to brand a fresh new image. Also, there was an overall skepticism and fear of change from long time stockholders, employees and customers.
The start-up costs for technology, marketing, facilities and personnel framework incurred during the first eighteen months ran the bank into a net loss totaling over $1.4 million for the years 1999 and 2000 combined. In 1999, Engle quickly started branding a new friendlier image and shortened the bank name to First Bank. In that same time period, four new locations were opened, First Bank’s product offering progressed with the addition of Internet Banking, Bill Pay, Telephone Banking, Debit Card Services, six ATM locations were added and the banks first mortgage department opened. Also, the holding company that owned First Bank changed its name from BJ Morgan Bancshares, Inc. to First Shares Bancorp, Inc. In the spring of 2000, the bank held a public $7 million best efforts offering. The unfavorable business climate and stock market decline made it difficult for a new issue. The bank realized only $3.2 million from the offering. This was enough to finish 2000 and 2001.
During the second quarter of 2002, the company issued a $5 million debentures and mandatory stock purchase contract. That raised $4.2 million net, of which $3 million was down-streamed to the bank. This will be more than adequate to continue the bank’s growth strategy for the next several quarters. Although the year 2000 ended in a net loss, the bank began making money in August of that year. Since that time, 2001 was profitable as well as the current year to date. The framework set in place by Engle has proven successful, and the bank continues to grow. The demand for ‘Common Sense’ banking continues to increase as people learn the value of banking with the people that are empowered to make decisions.
The Solution
Engle quickly got a handle on what needed to be done. The initial years of negative income were planned in order to get the necessary framework in place to build market-share. The solution included: hiring the right people, freshening the bank’s image, finding good convenient locations and offering the right product mix.
Engle hired experience, shortened the bank name, and gave the bank a new look without compromising the old-fashioned values the bank was built on. Engle has a gift of finding good people. He hired local talent with banking experience. It was easy for him to hire people because so many bankers were tired of the ‘Big’ bank philosophy and wanted to be able to make decisions without being hassled.
Engle shortened the bank name, as part of a major marketing effort to freshen the bank’s image. New signage, merchandising, and customer service initiatives appeared. Facilities and technology were overhauled with state of the art equipment and appearance. Engle’s leadership style quickly permeated the bank; he won people over with their humor and ability to keep the team focused on the excitement of gaining market share and increasing the bottom line. Customer satisfaction levels increased with the fresh new image the bank had created.
In the spring of 2002, the old Morgantown office was totally refurbished with a brighter and fresher appearance without losing any of its old-fashioned character (symbolic for what Engle has done for the entire bank). In the fall of 2001, the Nashville branch moved into their permanent home, carefully designed to coincide with the heritage of Nashville. Then, 2001 climaxed with a net profit of $692,000. That was a $1,550,000 swing from the $858,000 loss in 2000. January of 2002 began with the opening of First Bank’s seventh location, a new Mortgage Office in Greenwood. A successful $5 million debenture offering was realized in the spring of 2002. And, July 1st 2002 First Bank opened a lending office in Franklin.
A large part of the bank’s growth can be directly tied to the people Engle hired and the new products and services First Bank began releasing. In order for First Bank to gain market share, Engle knew the bank had to offer a competitive product line. First of all, a Mortgage lending department was formed to enable the bank to gain fee income from selling mortgages to the secondary market and to increase exposure in the market place. An indirect lending program was started to increase the consumer loan portfolio by signing up auto dealers with lending programs. In addition to those two main product offerings, First Bank began offering Home Equity loans, Internet banking, Cash Management Services, Bill Pay, Telephone Banking and Debit cards. Currently, the bank is at $145 million in assets, (compared to $42 million in March of 1999) and stockholders are now more confident than ever in the direction of First Shares Bancorp, Inc.
The Challenge
First Bank began as the Morgantown Bank established in November of 1899. In 1927, the bank was chartered as a State Bank, and the name became First State Bank. In 1995, First State Bank added a second location with the purchase of the former Bank One branch in Trafalgar. In March of 1999, the Board of Directors announced the addition of Jerry R. Engle to the bank in order for the bank to grow market share. Engle was met with several obstacles to say the least. To begin with, the old fashioned bank needed an overhaul on product and services. Debit Cards, Internet Banking, Cash Management Services and Mortgage Lending were just a few of the major product offerings Engle added in a short time period. Also, he and three other Citizen’s Bank affiliates took on personal risk by plugging an additional $1 million into the banks capital of their own money. Moreover, the bank’s net income had been on the decline over the recent years. It had not seen any real growth for over two decades. Technology and communication’s framework was not in place, and the bank needed to brand a fresh new image. Also, there was an overall skepticism and fear of change from long time stockholders, employees and customers.
The start-up costs for technology, marketing, facilities and personnel framework incurred during the first eighteen months ran the bank into a net loss totaling over $1.4 million for the years 1999 and 2000 combined. In 1999, Engle quickly started branding a new friendlier image and shortened the bank name to First Bank. In that same time period, four new locations were opened, First Bank’s product offering progressed with the addition of Internet Banking, Bill Pay, Telephone Banking, Debit Card Services, six ATM locations were added and the banks first mortgage department opened. Also, the holding company that owned First Bank changed its name from BJ Morgan Bancshares, Inc. to First Shares Bancorp, Inc. In the spring of 2000, the bank held a public $7 million best efforts offering. The unfavorable business climate and stock market decline made it difficult for a new issue. The bank realized only $3.2 million from the offering. This was enough to finish 2000 and 2001.
During the second quarter of 2002, the company issued a $5 million debentures and mandatory stock purchase contract. That raised $4.2 million net, of which $3 million was down-streamed to the bank. This will be more than adequate to continue the bank’s growth strategy for the next several quarters. Although the year 2000 ended in a net loss, the bank began making money in August of that year. Since that time, 2001 was profitable as well as the current year to date. The framework set in place by Engle has proven successful, and the bank continues to grow. The demand for ‘Common Sense’ banking continues to increase as people learn the value of banking with the people that are empowered to make decisions.
The Solution
Engle quickly got a handle on what needed to be done. The initial years of negative income were planned in order to get the necessary framework in place to build market-share. The solution included: hiring the right people, freshening the bank’s image, finding good convenient locations and offering the right product mix.
Engle hired experience, shortened the bank name, and gave the bank a new look without compromising the old-fashioned values the bank was built on. Engle has a gift of finding good people. He hired local talent with banking experience. It was easy for him to hire people because so many bankers were tired of the ‘Big’ bank philosophy and wanted to be able to make decisions without being hassled.
Engle shortened the bank name, as part of a major marketing effort to freshen the bank’s image. New signage, merchandising, and customer service initiatives appeared. Facilities and technology were overhauled with state of the art equipment and appearance. Engle’s leadership style quickly permeated the bank; he won people over with their humor and ability to keep the team focused on the excitement of gaining market share and increasing the bottom line. Customer satisfaction levels increased with the fresh new image the bank had created.
In the spring of 2002, the old Morgantown office was totally refurbished with a brighter and fresher appearance without losing any of its old-fashioned character (symbolic for what Engle has done for the entire bank). In the fall of 2001, the Nashville branch moved into their permanent home, carefully designed to coincide with the heritage of Nashville. Then, 2001 climaxed with a net profit of $692,000. That was a $1,550,000 swing from the $858,000 loss in 2000. January of 2002 began with the opening of First Bank’s seventh location, a new Mortgage Office in Greenwood. A successful $5 million debenture offering was realized in the spring of 2002. And, July 1st 2002 First Bank opened a lending office in Franklin.
A large part of the bank’s growth can be directly tied to the people Engle hired and the new products and services First Bank began releasing. In order for First Bank to gain market share, Engle knew the bank had to offer a competitive product line. First of all, a Mortgage lending department was formed to enable the bank to gain fee income from selling mortgages to the secondary market and to increase exposure in the market place. An indirect lending program was started to increase the consumer loan portfolio by signing up auto dealers with lending programs. In addition to those two main product offerings, First Bank began offering Home Equity loans, Internet banking, Cash Management Services, Bill Pay, Telephone Banking and Debit cards. Currently, the bank is at $145 million in assets, (compared to $42 million in March of 1999) and stockholders are now more confident than ever in the direction of First Shares Bancorp, Inc.