Manditch of Empire National Bank reveals strategy for success as his bank receives national acclaim

With 44 years of banking experience and the distinctive credential of being the only person on Long Island to start two banks, Empire National Bank's chairman and chief executive officer Douglas Manditch proudly accepts the accolades his new bank has received for its stellar performance in these uncertain economic times. In less than two years, the bank has grown into a thriving financial institution with branches in Islandia, Shirley and Port Jefferson Station. A Nassau County location is slated to open in the second quarter of 2010. The American Bankers Association's recent national survey of 23 startup banks confirms its noteworthy success. Empire National - in operation for less than two years - is ahead of the industry average with $197 million in total assets as of July 31. Banks averaging about two years of operation typically have assets of $109 million. Manditch credits the bank's achievements on an increased loan demand at community banks. "The big banks' troubles, particularly on the lending side, have provided many new loan opportunities, and we have been aggressive in pursuing this market," he said. "Our strategy of taking advantage of every opportunity in the marketplace combined with an aggressive expansion plan has put us far ahead of our initial financial projections." He also attributes much of the bank's swift growth to the availability of experienced bankers who joined the bank and brought their customers with them. "The changing Long Island banking landscape has worked to Empire National's benefit." "Our approach to business is to present our customers with deposit products and services that help expedite cash flow, make their daily banking more efficient, convenient, and possibly save them costs with credit card processing. Most importantly, we listen to our clients and customize our offerings to meet their individual needs." Manditch decided to start Empire National when he saw a void on the local banking landscape. "Bank consolidations, combined with recent difficulties in the credit and capital markets, presented a real opportunity. Many banks were currently facing credit quality issues or capital constraints, and we had the opportunity to start with a clean slate." He was confident that under his mantle a bank dedicated to serving the needs of Long Island's small to mid-sized businesses, professional practices and not-for-profit organizations would be well received by the Long Island business community. His instinct was correct. Even before Empire National opened the doors of its Islandia corporate headquarters and main branch on February 25, 2008, the bank made history as Long Island's largest de novo bank capital raise. "We set out to raise a minimum of $25 million in capital to organize the bank and received subscriptions well in excess of our maximum amount. Ultimately, we elected to revise our maximum offering amount to $37 million." Manditch believes service is the great equalizer among financial institutions. "Empire National is committed to bringing back the personal touch to customer service while providing state-of-the-art products and services that compete with the bank's largest competitors. We pride ourselves on offering all the tools necessary to conduct banking competitively, effectively, safely and securely in today's fast-paced business environment." "We understand that our customers want the neighborhood bank experience, appreciate personal service and value the bank's local decision-making ability. Our bankers not only understand the regional business environment, but they also live and work in the area. They pride themselves on working with borrowers to find effective solutions to meet each individual's lending needs. Also, our accomplished board of directors and many shareholders include many prominent Long Islanders who have an important stake in the bank's success." Manditch acknowledges that the commercial real estate market is the primary sector for all commercial banks on Long Island. "Our $145 million loan portfolio (as of July 31) speaks for itself. A total of $108 million is linked to commercial real estate: commercial real estate mortgages, 37 percent; multifamily, 27 percent; commercial equity lines of credit, 6 percent and construction loans, 5 percent." "Commercial real estate has basically been surprisingly strong in the current economic environment, and I am optimistic that there won't be a significant turndown from this point forward." Empire National has a very strong team of experienced lenders, led by Christopher Hilton, chief credit officer and Richard O'Brien, the bank's senior lending officer. "We are ready to lend to healthy businesses and professionals." Manditch observed that residential development remains very weak. "Hopefully this arena is coming close to bottoming out with inventories of existing houses for sale continuing to diminish." Not only has Empire National Bank's business model been recognized for its success, but its brick and mortar structure has also achieved recognition for its architectural excellence. Long Island Business News honored the bank as one of its "Top Projects" in 2008. Its Islandia corporate headquarters and main branch ranked as one of Long Island's best examples of commercial construction. Manditch remarked that a 19,000 s/f older property was transformed into a welcoming atmosphere for bank customers and a pleasant environment for employees. "A reflecting pool was installed in an atrium and a waterfall provides a tranquil patio area for both clients and employees. The atrium is surrounded by floor-to-ceiling glass to allowing natural light into a majority of the renovated space." He commented that it was a massive transformation. "We had to create new infrastructure and exterior walls, state-of-the-art technology, a data center, monitors and miles of hidden cable." Outside visibility was a crucial design element. "The objective was to draw people in and create a beacon at night." The combination of skylights, clean lines, neutral tones and a mix of traditional elements creates a welcoming environment and sophisticated ambiance." Optimistic about Long Island's economy, Manditch predicts a bright future for the bank. "We would like to see Empire National surpass $1 billion in assets in the next four or five years. Our vision is for continued growth and expansion while retaining our core values of personal service and ongoing support of the institutions that improve the qualify of life for all our fellow Long Islanders." A vital force in both Long Island's business and philanthropic communities, Manditch was one of the founders and served as president and chief executive officer of Long Island Commercial Bank and Long Island Financial Corporation, from the formation period in 1987 until the company's purchase by New York Community Bancorp., Inc. in December 2005. He served as a past chairman of the New York Bankers Association, Long Island Division, a past state New York chairman for the American Bankers Association, and a past chairman of the Advancement for Commerce, Industry and Technology (ACIT). Manditch recently received the Theodore Roosevelt Award from St. Charles Hospital and was AHRC Suffolk's Honoree for its 48th Candlelight Ball. He will be recognized this October by the Child Care Council of Suffolk's at its 2009 "Champions of Children" luncheon. Manditch currently serves on the board of the Thomas Hartman Foundation for Parkinson's Research and as co-chairman of the honorary board of the Suffolk County Coalition Against Domestic Violence. An honorary member of The Friends of Sagamore Hill, he sits on the advisory board of the Theodore Roosevelt Council of the Boy Scouts of America.