Magna Bank — What's great about our new name

1st Trust Bank changes its name to Magna Bank to match the great expectations

MEMPHIS, TN — One of Tennessee's fast-growing banks — 1st Trust Bank for Savings — has decided to change its name to Magna Bank to match the great expectations its officers and shareholders have for the future.

“Our philosophy is that customers deserve great service — not just good or adequate service,” said Bill Menkel, president and chief executive officer. “We chose our new name because ‘magna’ means ‘great’ in Latin. The name fits who we are,” he added.

“We also believe the name reflects the great things that lie ahead for our customers and our bank,” stated Kirk Bailey, the bank's chairman. “Magna speaks to the great aspirations we have to grow and it describes perfectly our goal of becoming a dominant, full-service bank in Memphis.”

The bank, which will retain its federal savings charter, is in the midst of a major expansion of services and geographic growth. The bank was founded in January 1999 primarily to service real estate lending needs. The bank gradually added traditional banking services and today is a full-service bank. The bank currently is building three new branches.

The bank's management team is led by three men with extensive banking backgrounds. Bailey and vice-chairman Ron Stimpson had been executives at Leader Federal Bank for Savings, Leader Financial Corporation and Union Planters Bank. Menkel was president of Memphis SunTrust Bank, formerly National Bank of Commerce, and regional executive of National Commerce Financial Mortgage Operations.

Bailey and Stimpson organized the bank with Harold Crye and Richard Leike, two veteran real estate executives just eight years ago. Crye and Leike remain on the bank's board of directors.

The bank's growth pattern accelerated in August 2005 when Menkel joined as president. Menkel added CEO to his title in January 2006. In late 2005 Menkel and Bailey raised $20 million in equity capital through a private placement. The money allowed the bank to move into private banking and enhanced retail services to complement its commercial and residential real estate lending.

“All of the right factors came together about a year ago,” Menkel said. “Everything to be a premier community bank in our market now is in place — people, systems and plans to build the three new facilities.

“With our new name, we will not be confused with all the other banks that have the word ‘first’ or ‘trust’ in their names,” he said.

In eight years of operation, the total assets of 1st Trust Bank for Savings have grown to $364.9 million as of March 31, 2007, with $290.8 million in loans, $243.1 million in deposits and $44.1 million of equity. The bank's headquarters is at 6525 Quail Hollow Road in Memphis.