Following the Crowds

Following the Crowds

By Francis X. Gilpin

Associate Editor

Hillsborough County grew by 84,573 people between 2000 and 2003, according to a local planning commission estimate. Sprawling residential subdivisions such as Westchase and Fishhawk Ranch may be most responsible for the countyis booming population, which has crossed the 1 million mark.

But itis not just the cow pastures in unincorporated areas that are sprouting houses. There is a development boomlet going on within the city limits of Tampa and itis happening in a surprising place.

South Tampa, long an exclusive yet cramped preserve of the cityis business and political establishment, is somewhat reluctantly making room for newcomers.

Older bungalows are getting knocked down in Hyde Park or Palma Ceia and are being replaced by what neighborhood activists deride as iMcMansions,i large Mediterranean or Georgian-style mini-palaces that can cover up to 80% of a lot under liberal city zoning ordinances.

Other newcomers are taking up residence in condominiums. Luxury high-rises dot Bayshore Boulevard and more modest digs are overrunning the Interbay peninsula.

Local bankers are following the crowd to South Tampa. Thatis because theyire following the money. The South Tampa banking market represents more than $1.7 billion in deposits.

For the 12 months ended June 30, the more than 40 bank branches doing business in South Tampa took in $147 million in new deposits, according to a GCBR analysis of Federal Deposit Insurance Corp. data. Thatis a very healthy 9% increase.

Two more branches are about to be added to that count. The additions will be for two local banks that already have picked up market share with single branches in South Tampa during the past year.

In the spirit of urban infilling that has characterized South Tampa redevelopment, both banks are retrofitting retail buildings.

First Commercial Bank of Tampa Bay, a unit of Tampa-based FCB Financial Inc., plans to open a branch in a former flower shop on Gandy Boulevard. The 15-year-old bank, which has $142 million in assets, has operated solely from 4600 W. Kennedy Blvd.

The Palm Bank, which has been open less than two years, is in the process of converting an old gasoline-filling station into a second branch on Davis Islands. The $74-million-asset bank already has an administrative office in Palma Ceia to assist the headquarters on South Dale Mabry Highway.

Both banks have made considerable strides during the past year in South Tampa.

As of June 30, First Commercial Bank held $117 million, or almost 7% of the deposits in banks located in South Tampa. That put First Commercial Bank in fifth place for South Tampa deposits, behind only Bank of America, Wachovia Bank, Bank of Tampa and SunTrust Bank.

In 2003, First Commercial Bank had been in seventh place, with less than 6% of South Tampa deposits.

The Palm Bank had $50 million on June 30, nearly 3% of South Tampa deposits. That was good enough for 10th place. A year earlier, Palm Bank had just over 1% of the market.

The fastest growing neighborhoods in Tampa are found in the New Tampa developments of Tampa Palms and Hunteris Green. But the Hillsborough County City-County Planning Commission reports moderate growth in the Ballast Point area of South Tampa.

Chris Anderson, president and chief executive of The Palm Bank, told GCBR earlier this year that it was only a matter of time before banks start scouting for branch locations south of Gandy Boulevard.

South Tampa boasts some of the cityis wealthiest residents.

Planning commission figures show seven South Tampa census tracts in 1999 had at least 100 households making in excess of $200,000 a year. The rest of the city had a total of four tracts with the same level of affluence. One was on Harbour Island and three were in New Tampa.

Local institutions appear to be thriving in South Tampa at the expense of bigger out-of-state banks. Half of the areais 10 biggest deposit institutions gained market share in the past year.

Three of the five gainers are banks that are based in Tampa. Along with First Commercial Bank and Palm Bank, the Bank of Tampa went from fourth to third place in deposits.

The Bank of Tampa held $218 million on deposit at its two South Tampa branches on June 30. That represented an almost 13% share of the market.

The subsidiary of The Tampa Banking Co. saw $41 million flow into the bankis South Tampa offices during the previous 12 months.

That was the largest deposit increase of any bank in South Tampa. The Palm Bank and AmSouth Bank were next with about $31 million each in new South Tampa deposits.

Birmingham, Ala.-based AmSouth was a rarity among the super-sized banks, which otherwise did poorly in South Tampa.

Bank of America attracted about $24 million in new South Tampa deposits, but the Charlotte, N.C.-based giant still lost a less-than-1% slither of market share in the area.

Wachovia and SunTrust Bank experienced actual declines in deposits, two of only three banks among the 18 operating in South Tampa that did between 2003 and 2004.

Atlanta-based SunTrust lost $6 million in South Tampa deposits. The drop at Wachovia, which is based in Charlotte, was $17 million.

But that was nothing compared to First National Bank of Florida.

More than half of the money on deposit at the old Southern Exchange Bankis South Tampa branches went elsewhere after First National Bank acquired the Tampa bank. First National Bank acquired three Southern Exchange branches in South Tampa as part of the purchase last year.

The unit of Naples-based First National Bankshares of Florida Inc. will itself be acquired by Fifth Third Bancorp of Cincinnati during the first quarter of 2005.