New banks in Victoria create more options for customers
March 15, 2014 at 12:01 a.m.
Updated March 15, 2014 at 10:16 p.m.
• Annual percentage rate (APR): The cost of credit on a yearly basis, expressed as a percentage.
• Appraisal: The act of evaluating and setting the value of a specific piece of personal or real property.
• Credit limit: The maximum amount of credit that is available on a credit card or other line of credit account.
• Escrow funds: Funds held in reserve by a mortgage company to pay taxes, insurance and other mortgage-related items when due.
• Fixed rate loan: The interest rate and the payment remain the same over the life of the loan. The consumer makes equal monthly payments of principal and interest until the debt is paid in full.
• Refinancing: A way of obtaining a better interest rate, lower monthly payments or borrow cash on the equity in a property that has built up on a loan. A second loan is taken out to pay off the first, higher-rate loan.
• Variable rate: Any interest rate or dividend that changes on a periodic basis.
Consumers enjoy selection.
With new banks moving into Victoria, it might be time to shop around.
"Think of ice cream," Terry Cullen, president of First National Bank in Port Lavaca, said. "That's why there are different flavors and different brands - people like different things."
In the past six months, three banks have opened temporary locations in Victoria: First National Bank in Port Lavaca, First Community Bank of Texas and First State Bank of Louise.
The opportunity may have presented itself when Prosperity acquired First Victoria in July 2013.
"It was the event that encouraged us to make the commitment," Cullen said.
Before the move, he participated in several discussions with the bank's officers regarding the potential of the Victoria financial market, he said. The bank opened Feb. 19 at the corner of Mockingbird Lane and Main Street.
While the bank offers consumers and businesses its full array of services, plans are in the works to build a new, permanent, estimated 5,000-square-foot location with drive-thru lanes, an ATM and a night deposit box.
It's a move that's common practice for banks while entering a new market, Cullen said. Depending on regulations, some banks can open right away with all their services while some will open partially.
In October, the First State Bank opened a location on John Stockbauer Drive as a loan production office.
"We felt there was a need and vacancy in the community bank market," Clay Kolle, senior vice president and branch manager in Victoria, said.
The bank has plans to open a permanent location in the city later down the road, but right now, the bank is working on bringing all its services to the table for its customers.
More services make each bank more competitive, Kolle said. Individuals and business owners can now shop around and search for terms on a loan that fit them best and see what kind of rates are available, he said.
"There weren't many banking institutions in the Victoria market," Kolle said, referencing information from the Federal Deposit Insurance Corp. website. "A similar-type market might see about 30 institutions in our market."
As of June 30, 2013, there were 22 offices listed in Victoria with 10 banking institutions, according to data collected by the FDIC.
First Community Bank, which is based in Corpus Christi, is the newest bank to enter the Victoria market. The bank opened its doors March 3 on the ninth floor of the One O'Connor Plaza building.
Small business and family lending are the bread and butter of First Community Bank in the Corpus Christi market, said Wes Hoskins, president/CEO.
"It was a natural extension for us to come into the Victoria market," he said.
The company considered moving into Refugio but chose Victoria because of its growing economy, he said. Factors, including the Eagle Ford Shale, and its expected expansion were considered when finalizing plans.
New banks in the Victoria market open the door to more financial options for individuals and businesses, Hoskins said.
"As a banker, we have to provide better services and competitive rates and products," he said. "It's better for the consumer."
Cullen is hopeful the growing number of options make will improve the community as well.
"Competition is a good thing. It should make people better - the more competition, the better people have to perform to survive and thrive," he said.