It's a Wonderful Life (for small banks).

• Author: Stoker, Kevin
• Position: Brief Article

"Today the branch he's managing has assets about equal to or greater than the one that was taken over," Gunther says.

That's one of the reasons Gunther and several other Utah-based bankers have happily anticipated the completion of the Wells Fargo--First Security merger. Soon after the Wells Fargo signs are raised over former First Security branches, they (Utah bankers) expect to pick up some good employees as well as a large number of customers who, as Utah County's Central Bank has advertised, "want to look their banker in the eye."

"Our whole campaign is that the bigger the other banks get, the less personal service they can give," says Alvin L. Harward, senior vice president of Central Bank. "A community bank has the advantage of knowing your name."

Central Bank launched its advertising campaign when First Security first announced plans of a merger with Zions National Bank. It has continued its "When is the last time you looked your banker in the eye?" campaign ever since, raking in substantial increases in new accounts and revenue. Central Bank Executive Vice President Matt Packard refused to reveal specific numbers.

The Bank of American Fork, which has seven branches in Utah County, and Zions Bank have already picked up former First Security customers -- they consider these new accounts just the beginning.

"Where the rubber hits the road is when the new system (at First Security) goes into effect," says Gunther. "I have a lot of respect for Wells Fargo and First Security, particularly First Security. They are very capable and competent, but when you get big you have to rely a lot on systems. People can become secondary to systems."

George Hofmann, executive vice president of the retail-banking division at Zions Bank, says Zions has also seen an increase in new accounts being opened by former First Security and Wells Fargo customers.

He expects the flow of new accounts to increase even further when the merger is finalized, the signage and products start changing, and branches begin closing. "People don't bank with a bank; they bank with a banker," says Hofmann.

First Security declined an interview with Utah Business magazine, but its competitors were eager to talk.

"This bank is not for sale," says Alvin Harward, Central Bank's senior vice president." It's great to work for an organization that's not for sale."

Founded in Springville in 1891, Central Bank never closed its doors during the Great Depression. It's now headquartered in...