Community banks shaped Orlando
More than 30 years ago, my former company, SunBanks of Florida Inc., announced that it would combine with Trust Company of Georgia to form a new company, SunTrust Banks Inc. The deal was referred to as a merger of equals, and it would create the first regional bank under the newly enacted regional interstate banking compact.
The former companies would continue to operate separately chartered and locally managed community banks throughout Florida and Georgia, as we had all along, albeit with a stronger capital base. And for many years, that’s exactly what happened. But deep down, I knew it wouldn’t be that way forever.
We believed in the motto of our founder, Linton Allen, that if you “build your community, you build your bank.” Local bank presidents supported by their boards of directors and with the backing of the parent company made local decisions about everything from interest rates to bond-portfolio management and, importantly, support for community needs.
The old ways of banking produced an incredible crop of leaders who really cared and made a difference. They grew up in and spent their entire lives dedicated to the community. People like my predecessors — Linton Allen, Billy Dial, Joel Wells, Buell Duncan, Wendell Colson and Hans Tews — put the bank’s money and influence where its mouth was. They played a major role in shaping Orlando from a citrus town to the booming metropolis it is today.
Countless new community assets such as Martin Company (now Lockheed Martin), Florida Technological University (now University of Central Florida), Walt Disney World, Orlando International Airport and even Interstate 4 were facilitated through the involvement of these leaders. That same kind of banking leadership played out in communities all over the state when local bankers had a powerful seat at the table.
Now that there are no longer any major banks headquartered in Florida, that influence has waned. Automation, technology advancements, consolidation, centralization and regulation have succeeded in transforming the regional and national banks into little more than huge financial commodity brokers. No longer is wide-ranging authority manifested locally other than in headquarters cities.
Having a meaningful seat at the table requires the ability to write a big check and speak with authority on all issues important in the town. Local managers in all big banks now follow instruction from leaders located someplace else. How regrettable, but perhaps, inevitable, that cities and towns all over the country are now without this crucial local leadership resource.