Banks follow the money to Friendswood

Bank notes: Crews last week began hammering away at a second Friendswood branch for island-based HomeTown Bank. The $1.6 million project will yield a 7,864-square-foot building at 600 S. Friendswood Drive in the city’s downtown. The bank will occupy 3,085 square feet of the building and lease the remaining space. The development is on a pad site in the Friendswood Village Shopping Center.

By leasing excess space, the bank generates revenue. But more importantly, the right tenant should complement the bank, luring more traffic to the building, Jimmy Rasmussen, president and CEO of HomeTown Bank, said. The bank hasn’t yet secured a tenant.

The newest location, set to open in the fall, gives HomeTown Bank four branches in the county and six altogether. Its other Friendswood bank is at 3211 FM 528 on the eastern edge of town in Harris County.

Friendswood will provide HomeTown Bank with a $15,000 grant to apply toward the cost of building and public improvements, including adding lighting, benches and expanding sidewalks. Friendswood is attempting to revitalize its downtown, using such grants as incentives.

HomeTown Bank has 85 employees, $353 million in assets and $317 million in deposits.

HomeTown Bank is growing, but not aggressively, Rasmussen said. The bank usually gives new branches about three years to get settled and turn a profit before opening another, he said.

Things that go boom: Friendswood has only about 37,000 residents. But what it lacks in size, it makes up in wealth. The median household income is $117,000. The city has more than 20 banks, Rasmussen said. And the bank boom continues.

Officials confirm all that dirt turning at 255 West Parkwood (near the shopping center anchored by H-E-B) is for a Chase bank. The branch under construction will mark New York-based Chase’s third in Friendswood. Chase is seeking a branch manager and assistant manager for its newest location, officials said. Chase will hire nine employees for the bank, which is expected to open by year’s end.

Still empty: Meanwhile, readers want to withdraw information about that never used 2,500-square-foot building, 6216 Broadway in the Galvez Shopping Center, that was supposed to be a Wachovia Bank. Construction came to standstill after Charlotte, N.C.-based Wachovia Corp. and San Francisco-based Wells Fargo merged in 2008 through a $15.1 billion all-stock transaction.

But Randal Hall, a principal of Island Realty Partners Ltd., developer of the center, reported a year ago he and business partner Tod Ruble of Harvest Partners, were in talks with two possible buyers for the building. Hall was mum on names but hinted a local credit union and a national bank were eyeing the site. But Hall recently told Buzz there’s nothing new to report. Stay tuned.

Stretching your Dollar: Business must be good, because deep discounter Dollar General wants more space on the island. The retailer plans to move sometime in the next two months from 6711 Stewart Road to the 6900 block of Stewart Road. Dollar General will join Island Church in a subdivided building formerly occupied by Gerland’s Food Fair, assistant manager Donald Reid said.

Biz Buzz appears Tuesdays and Thursdays.