Published in Finance

First National Bank of Michigan eyes expansion to Holland, other contiguous markets

BY Sunday, October 30, 2016 04:56pm

Kalamazoo-based First National Bank of Michigan plans to open a Holland office five years after moving into the Grand Rapids market.

From its downtown Grand Rapids location, FNB has been able to tap into the lakeshore market, making the planned full-service Holland office a natural extension, said President Dan Bitzer.

“We’ve been doing business in Holland, so we’re just leveraging the business we’ve done over five years and putting a team of bankers on the lakeshore and on the street,” Bitzer told MiBiz. “There’s a fair amount of business over there for all banks.”

FNB has yet to finalize a site for the new office in Holland, which will become the bank’s fifth branch. FNB also has three offices in the Kalamazoo area, plus one in downtown Grand Rapids.

The bank will start with a temporary location focusing on commercial lending that will open within three months, and later move to a permanent branch office within nine months, Bitzer said. “All options are on the table” for the Holland office, including leasing an office, new construction or buying an existing office to house a branch.

“As fast as we can find a spot, we’ll get it done,” Bitzer said.

FNB hired a veteran banker, Greg Accardo, previously with PNC Bank, as market president for the new Holland location.

“Greg has a keen understanding of the West Michigan market, and brings more than 25 years of experience and knowledge to First National Bank of Michigan,” said Jefra Groendyk, FNB’s market president for Grand Rapids. “His expertise and leadership in business banking — from lending and treasury management to merchant services and more — make him an incredible asset.”

FNB started in 2006 with a single office in downtown Kalamazoo and has steadily expanded its footprint. The bank will continue to look at new markets in the years ahead, ranging from Lansing to the lakeshore, Bitzer said.

“You’ll see us expand to a couple more markets,” he said. “It’d be fair to say that in the next five years, you’ll see expansion in the contiguous markets.”

As of midyear, the privately owned FNB had total assets of $423.6 million and $353.6 million in total deposits, according to a quarterly financial statement filed with federal bank regulators. Net income for the first six months of the year totaled $2.6 million.

In its home market of Kalamazoo County, FNB ranked third among 17 banks in deposit share in the 2016 FDIC Summary of Deposits. As of June 30, the bank had $292.8 million in deposits in Kalamazoo County for a 9.59 percent market share. 

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