Orlando National Bank to break ground on downtown building

Orlando National Bank has confirmed plans to build a three-story bank building on the corner of Orange Avenue and Robinson Street in downtown Orlando.

Construction costs for the project were not disclosed.

President and CEO Michael Nelson says final approval on the project is expected to come the end of October, and the bank plans to break ground sometime in the first quarter of 2006.

Deno Dikeou, owner of the corner lot, will be the developer for the project, and interior design will be handled by Brown & Deddins, which is also doing the interior design work for Orlando National Bank's Winter Park branch that will break ground on Oct. 17.

Nelson says the expansion is part of Orlando National Bank's long-term plan to build a bank that targets the local business community. The bank currently has four branches, but plans are to close the one in Waterford Lakes. With the Waterford Lakes closure by year-end, the 10,000-square-foot, two-story Winter Park branch and the announced downtown Orlando branch will become the bank's fourth and fifth locations, Nelson says.

"Both Winter Park and Orlando are critical locations for us," Nelson says. "We believe it is important to get our presence anchored there first before expanding any further." The new building, he adds, "solidifies our presence in downtown Orlando."

The Longwood-based bank -- formerly known as Liberty National Bank -- underwent a name change in January 2005 when Liberty was acquired by a group of investors led by Nelson. Nelson says the name change to Orlando National Bank gave the investors "an opportunity to develop a solid community bank in Central Florida for the long term."

As part of the bank's strategy, each branch is built as a "true bank center," Nelson says, including the presence of senior officers and multiple services all under one roof.

When asked about future expansion, Nelson says that likely will not take place for another couple of years. "Then we will probably look at doing something in the south part of the county," he says. "But first we need to take care of the Winter Park and downtown projects first."

As of September, Orlando National Bank employed 41, has total assets of $99 million and total loans of $65 million, and had Small Business Administration loan volume of $31 million.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.