TD Bank is coming.
A plan to build a TD Bank branch in Barrington is the opening move in what will be a larger expansion into the state, the bank’s top regional executive acknowledged recently.
Mark Crandall, regional president of Massachusetts and Rhode Island, said TD Bank N.A. – which operates in 12 states and the District of Columbia – has plans to build more branches in Rhode Island in 2010.
“I can’t give you a number,” he told Providence Business News. “But we’re certainly looking at coming into Rhode Island in a meaningful way.”
He also indicated that the $134 billion bank would be open to an acquisition, if the right opportunity presented itself.
The field in Rhode Island is already pretty crowded. Citizens Bank, Bank of America and Sovereign Bank hold nearly two-thirds of the state’s deposits. Dozens of other banks and credit unions share the remainder.
But Crandall said the turmoil in the banking sector has created an opportunity for financial institutions of TD Bank’s size. The biggest players in Rhode Island have been dealing with their own distractions.
Citizens’ parent, the Royal Bank of Scotland plc, was particularly hard hit by the financial crisis and now the British government holds a majority stake in the company following a bailout.
Bank of America Corp. recently repaid the $45 billion it owed U.S. taxpayers as part of the Troubled Asset Relief Program (TARP). It also hired a new CEO and is expected to be grappling with a massive amount of bad loans in 2010.
Sovereign was acquired last January by Madrid-based Banco Santander SA, which cut hundreds of jobs in 2009.
“That’s why Rhode Island is such a great fit for us,” Crandall said. “Many of the bigger banks do have their challenges.”
TD Bank hasn’t been immune to the troubles, however.
The bank’s parent, Toronto-based TD Bank Financial Group, last month reported a $941.8 million profit for the quarter ending Oct. 31, flat compared with the same period last year.
TD Bank’s U.S. subsidiary was formed in 2008 following TD Bank Financial Group’s acquisition of Commerce Bancorp Inc. in a deal valued at $8.5 billion. Branches of Commerce and TD Bank Financial Group’s subsidiary TD Banknorth have been rebranded as TD Bank.
Currently, TD Bank has locations in every New England state except Rhode Island. The closest location to the state line is in North Attleboro.
TD Bank recently appointed Robert A. Kolb, of South Kingstown, as its Rhode Island president. Kolb was previously the bank’s market president for central and western Massachusetts.
Crandall acknowledged the “competitive landscape” in Rhode Island – particularly with it being Citizens Financial Group’s home turf – but he said the bank’s emphasis on customer service might woo depositors.
“People are willing to change banks for a more compelling offering,” he said. “And we do a lot more than check cashing and order taking.”
TD Bank’s first branch will take the battle for customers to the competition.
The bank is seeking approvals to build its first Rhode Island branch on a 40,000-square-foot lot on County Road in Barrington, a spot that is next to a Bank of America branch, a short distance from Webster Bank, Sovereign, BankNewport and Citizens outlets.
Why Barrington for a new branch? “The town has compelling demographics,” Crandall explained. “It has good traffic counts and visibility. It’s not simply about the affluence of the town.”
The Barrington Planning Board has approved the plan, which includes a LEED-certified building, but the local zoning board must still OK the parking plan, a drive-through window and signage.
TD Bank isn’t the only financial institution looking to expand in Rhode Island, despite the turbulence in the banking sector.
Newport Federal Savings Bank announced recently that it will open a new branch in Westerly. In November, Westerly-based Washington Trust Co. opened a new branch in Warwick.
And Waterbury, Conn.-based Webster Bank recently opened a “flagship” office in Providence as well as a branch in Cranston earlier this year. •
