Tuesday, February 15, 2000
INDUSTRY NOTES: BANKING
Expert: Laws to change banks' roles
BY JEFF McKINNEY
The Cincinnati Enquirer
With new banking laws expected to drastically change the financial services industry, small banks will have to rely more on offering personalized products and services to survive, according to a Federal Reserve economist.
Small banks will need to focus on their ability to offer personalized services and build relationships with existing customers to compete, Fed Senior Economist Robert DeYoung wrote in the February issue of the Chicago Fed Letter.
His comments come after Congress passed a new law that will allow banks, insurance companies and investment companies to buy one another and sell one another's products and services.
Mr. DeYoung is looking at small banks' prospects in an era of post-merger activity, and as more banks offer services electronically.
To examine Mr. DeYoung's report, “Mergers and the changing landscape of commercial banks (Part II)” go to the Chicago Fed's Web site, frbchi.org.
Market Financial Corp. posts 4% gain in profits
Loan growth and a higher net interest margin helped Market Financial Corp. record an almost 4 percent gain in first-quarter profits.
The Cincinnati-based parent of Market Bank earned $83,000, or 7 cents a share, for the period ended Dec. 31, up from $80,000, or 6 cents a share, a year earlier.
The company attributed the gain to a 6 percent increase in net interest income, which was fueled by loan growth.
Market Bank, with assets of almost $55 million, has two branches in Hamilton County.
H&R Block joins retail mortgage operations
H&R Block Inc., the world's largest tax preparation company, said it is merging its retail mortgage operations into one company.
The new company, H&R Block Mortgage Corp., will combine the retail operations of Option One Mortgage Corp. and Assurance Mortgage Corp. of America. It will be based in Burlington, Mass.
Option One and Assurance Mortgage originated 6,700 loans in 1999, worth almost $1 billion.
H&R Block started buying mortgage companies three years ago as it looked to expand customer services and generate revenue from businesses other than tax preparation.
The company also has accounting and brokerage firms.
Web's DoubleClick on defense
Kroger selling 'Junior' T-shirts
Brandt relies on its roots
Broadcaster buys marketer
TRISTATE SUMMARY
INDUSTRY NOTES: BANKING
PEOPLE ON THE MOVE
TRISTATE MARKET SPOTLIGHT
U.S. sales rate gains on inventories
