'Customer-owned bank' says rivals ignore small business

ServisFirst will focus on commercial, industrial lending in local market

ServisFirst Bank, a fast-growing startup based in Birmingham, will open for business in Huntsville by mid-August, its first move outside the Birmingham market.

The timing is right to open ServisFirst offices here because of the area's strong economy and population growth, including the expected growth from moves related to the 2005 Base Realignment and Closure Commission decision, said Andy Kattos, president of ServisFirst in Huntsville.

The move also makes sense now because "you have the biggest banks getting even bigger through consolidation," he said. "The market that often gets left out is the small and medium-sized business owner."

Charlotte, N.C.-based Wachovia Corp. completed its acquisition of Birmingham-based SouthTrust Bank late last year. And Wachovia's proposed merger with Golden West Financial Corp., parent of World Savings Bank, is expected to close in the fourth quarter. Meantime, Regions Financial Corp. and AmSouth Bancorporation, both based in Birmingham, have announced merger plans.

ServisFirst will have its share of real estate lending but keep a heavy focus on commercial and industrial lending, including government contractors and professional groups, Kattos said. The commercial and industrial market "demands access to decision-making bankers who have knowledge of and a background in finance and accounting," he said.

Kattos said that what helps set the bank apart - and what has been credited for its early success - is its client/owner model.

"ServisFirst is a customer-owned bank," Kattos said. That means investors have an ownership in the bank, he explained, and are committed to doing business with the bank and bringing business to the bank through referrals.

"It's the right formula," said Kattos, formerly executive vice president and senior lender at First Commercial Bank in Huntsville. "That's truly what has driven the growth."

ServisFirst was launched in May 2005 with $35 million in startup capital. Since then, the bank - founded by president and CEO Thomas A. Broughton III, also co-founder of First Commercial Bank in Birmingham in 1985 - has built nearly $400 million in assets and about $350 million in deposits.

It will open its third location in the Birmingham area in August.

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.