Development News From Southwest Indiana

Staying put: Deal means Regions bank will remain downtown for years to come
By GAYLE R. ROBBINS, business editor, Vincennes Sun-Commercial

Regions Financial Corporation has sold the building at 302 Main St. in Vincennes which serves as the main branch for the local Regions bank. But that doesn't mean Regions will be leaving downtown, not for the foreseeable future.

"We're going to be downtown for a long time to come," said Dan Robinson, president of the local bank. "Regions bank is not leaving Main Street."

While Regions (NYSE: RF), which acquired the former Union Planters banks last year, is selling the Main Street building, along with more than 100 others the Birmingham, Ala.-based company owns, it plans to lease the space it currently uses from the new owners, American Financial Realty Trust, Jenkintown, Pa.

"What that means, for us, is that we're no longer going to be in the property-management business and can concentrate totally on the banking business," explained Robinson, who will be stepping down from his position at the end of the month.

The bank actually uses only the ground floor and the mezzanine of the six-story building at the corner of Main and Third streets - although "only" doesn't exactly capture how much space the bank uses.

"If we did leave, we'd have to find 120,000 square-feet of office space to relocate all the functions we do here," Robinson said. "The cost to build that much new office space is just prohibitive.

"Besides, this is a wonderful location," he added.

Kent Utt, senior vice president who will succeed Robinson as president, said organizations with which the bank currently has agreements allowing them to use space in the building, such as the American Cancer Society and the Knox County Community Foundation, will be able to remain.

"There are some details that have to be worked out, but it pretty much looks like they're going to be able to stay," he said. "And that's great for the community because having those offices downtown puts them in a central location that's easily accessible and where there's parking right behind the building."

Marc McNeece, president of the Knox County Chamber of Commerce, was glad to hear that Regions would be around downtown for years to come.

"That's great news, because the bank is one of the 'anchor' businesses that brings people downtown," he said. "People come downtown to do their banking and then they do other shopping as well."

Utt said not only would Regions be staying downtown, but the corporation would be investing some $250,000 in remodeling the space the bank now uses.

"We're going to become a regional training center for other banks in our group," he stated.

Robinson believes that having American Financial (NYSE: AFR) managing the property will, eventually, mean the building's now vacant offices will once again be utilized.

"You know, I can remember when this building was full, and not just with people working at the bank," he said. "There were lawyers and accountants and other professional people here.

"And I think that with American Financial, that can happen again, which would be great for the downtown."

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