Southwest Virginia-based bank bucking U.S. economic trends

BY DEBRA McCOWN
BRISTOL HERALD COURIER
ABINGDON, Va. – Despite the nation’s financial crisis, Southwest Virginia-based community banks seem to be faring well.
An example is Grundy-based TruPoint Bank, which even has a new branch office under construction on Main Street in Abingdon.
“TruPoint Bank, like most community banks, is very strong,” said President and CEO Barry Elswick. “We’re still lending and still doing the same things that we’ve always been doing. We see Abingdon as a great market that we need another office to serve well.”
On the east end of town, the branch will be the second in Abingdon for the bank, which operates from Grundy to Johnson City, Tenn. The branch is expected to open this spring and employ about 10.
Elswick said his bank remains close to its Southwest Virginia roots.
“We have stayed out of subprime lending,” Elswick said. “We try to do the right thing for our borrowers, our customers. We want there to be a win-win situation every time we approve a loan. We want that person to be able to pay the loan back and maintain their good credit. ... I think we have stuck to the traditional lending philosophy – make sure the customer has capacity to handle the credit request.”
He said this kind of focus – not size – is what defines community banks – and TruPoint has a growth strategy both now and when the economy improves.
Officials at other Southwest Virginia-based banks also define their institutions as community banks, and say they’re safe and sound despite the economy.
According to its Web site, New People’s Bank, based in Honaker, Va., reported profits in last year’s difficult third quarter.
“Our bank was not involved in the subprime mortgage market,” President and CEO Kenneth Hart said in a news release.
“We also did not invest in Freddie Mac or Fannie Mae stock, and we have consistently managed to keep our past due loans below 2 percent,” he said. “Community banks that have followed this route have usually done well during the national banking crisis.”
In a recent interview, Sam Neese, the CEO of Abingdon-based Highlands Union Bank, said his bank is “looking forward to continued growth and success in the future.”

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