EDITOR'S NOTE -- Contributing columnist, Steve Nicklas, expresses his views and insights on various topics of local interest in STEVE'S MARKETPLACE. __________
The revered bank building no longer has a name, but it has provided nameless memories and services for local residents.
When Bank of America moved out of its longtime office at 520 Centre Street, a void of sorts was created. Not only is the building now empty and lifeless, it leaves a cavernous vacancy in downtown Fernandina Beach.
Bank of America simply consolidated its operations into its other location on Amelia Island at 1822 S. Eighth Street, just a few miles away. It makes perfect business sense during these trying times.
However, there is no longer the simplicity and ease for downtown Fernandina businesses and residents to take in deposits or withdraw money at the historic Centre Street location. The building's history is evident from its past ownerships. It goes back to the former Barnett Bank, which was bought by Nations Bank -- and then merged into Bank of America.
There are other banks in the downtown Fernandina district, although they are also on the move. The Atlantic Coast Bank location at 715 Centre Street has reportedly been purchased by Citizens State Bank. Citizens had occupied a smaller office at 402 Centre Street.
The staff at Atlantic Coast will mostly remain intact, albeit under a new name. The 715 Centre Street site has changed hands several times over the years.
Banks have proliferated on Amelia Island. There are at least 15 banks on the island, which reflects the abundant wealth here. And it seems more banks move in all the time.
The banking environment across the nation has been oppressed by the receding real estate market. Many banks are facing a confluence of waning deposits, faltering mortgages, and declining loans. Compounded by a slowing economy, the banking industry faces its toughest challenge in many years.
There have been reports that an estimated 100 banks will fail before the situation improves. These reports have come from astute observers at high levels of government and business. (This has no reflection or implications on the banks mentioned in this article.)
Some five banks have failed thus far in the U.S. During the savings and loan debacle in the early 1990s, many more so-called “thrifts” did not survive. Many of the same factors were present then as now. These include a struggling real estate market, a slumbering economy, and lousy, abusive handling of assets and loans.
The U.S. survived that difficult period. By most standards, the early 1990s dwarfs what is taking place right now. However, there is still more to play out before the problematic sub-prime loans and adjustable-rate mortgages and the likes are resolved.
Regardless, it is sad when a pillar of industry leaves downtown Fernandina Beach. The downtown has been impacted by a litany of outside influences, including more competition for businesses as well as a slower tourism season.
But Amelia Island, Fernandina Beach, and the U.S. will survive -- to foster more memories of prosperity.
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(Steve Nicklas is a financial advisor who lives on Amelia Island. He can be reached at 904-753-0236 or at thenicklasteam2@msn.com.)