More small banks are blossoming around the country as mergers and acquisitions continue among larger banks.

        The trend — fueled by former banking executives going after disenchanted customers intimidated by financial conglomerates — comes as interest in old-fashioned, community banks is gaining popularity.

        The number of startup community banks nationally totaled 676 from 1998 through 2000, up 23 percent from 523 the previous three years, according to the Federal Deposit Insurance Corp., which insures deposits at most U.S. financial institutions.

        The growth in those banks is being felt in the Tristate. Four such institutions have popped up in Cincinnati since 1995 — in some cases, filling a void left by thrifts acquired by larger, local banks in recent years.

        Many former bank executives and investors are willing to gamble on raising millions to start up the smaller banks because they like the banks' growth potential, said Ron Riggins, managing director at RP Financial, an independent financial-services consulting firm in Arlington, Va.

        Though most of the banks don't break even for two to three years, Mr. Riggins said organizers typically are confident that they will survive and become profitable if management can offer personalized products and services to a niche market in a targeted area.

        “That's particularly true if the entity's board and management is highly regarded in communities they're serving,” he said.

Real world must be easier
Laughing all the way to the little bank
Small banks fill void left by takeovers
Microsoft president retiring
GE gets foot in door at Qantas
Understanding the emotions of overspending
Bush plans to revoke Clinton labor initiatives
HIGGINS: Personal finance
Industry notes: Commercial real estate
NYSE members want to know point of decimals
Producers' prices shot up in Jan.
Savvy Strategies
The Sophisticated Investor
Business Digest
Tristate Business Summary
What's the Buzz?