The Longview and East Texas economies remain strong and that translates into good times for area banks and financial institutions, according to several area bankers.

Rogers Pope Jr., president and chief operating officer of Texas Bank and Trust, said the institution surpassed the $1 billion point in assets in May and has sustained that level in recent months while much of the rest of the nation has been caught up in financial upheaval.

In a five-year period from June 30, 2004, to June 30 of this year, deposits in banks in a four-county area surrounding Longview have jumped 32.5 percent, according to the Federal Deposit Insurance Corp. Deposits in FDIC insured banks in Gregg, Harrison, Rusk and Upshur counties have grown from $3.259 billion in mid-2004 to $4.32 billion in June, for an increase of more than $1 billion, the agency reported.

During the same period the number of institutions increased by 10 percent, from 30 to 33, while the number of branches operated by those banks jumped from 85 to 97.

"Our success depends on the local economy," Pope said. "Fortunately, we have been insulated from some of the problems elsewhere."

Pope said Texas Bank and Trust has been on "a phenomenal growth run" for four years.

"Our assets grew by 86 percent, or nearly doubled," he said of the 2005 through 2008 period. While the strength of the region's oil and natural gas industries have helped buffer the East Texas economy, Pope said other sectors of the local economy also remain strong.

"Health care has grown and our manufacturing base continues to be strong," Pope said. "And, we're becoming more of a regional hub for retailing."

Jon Ruff, president of First State Bank with offices in Longview and Hallsville, said most area banks have remained on solid financial ground despite what is happening on the national banking and investing scene.

"Local banks have not chased the hot markets around the country like many super-regional and money center banks," he said. "Therefore, we have not suffered the consequence of the downturn."

Ruff said local banks remain healthy and well capitalized.

"We take a very conservative approach to things and I think most area banks do the same," said Ruff, who has been with First State Bank about 40 years.

"Actually, we're finding that all the turmoil of the past 60 days is helping us," Ruff said. With the recently raised level for insured deposits by the Federal Deposit Insurance Corp., from $100,000 to $250,000, he has seen an influx of cash as customers have moved funds from more volatile investments to those that are safer.

"I remain very optimistic for the future," Ruff said. "It's going to take some time to get through this turmoil but I really think we'll be stronger for it."

On the local scene, Ruff also feels the diversity of a strong manufacturing base combined with a robust energy sector has partially protected the Longview and East Texas economies.

Jim Wallace, senior vice president for BankTexas, which recently opened a Kilgore area branch and has a loan office in Longview, also said the energy sector of the region's economy has been a big boost in weathering the national economic upheaval.

"I'm glad we're in East Texas," Wallace said. "Our mineral base — oil, natural gas and lignite — have helped a lot but we also have a diversified manufacturing and business base."

Facilities that have opened in the past year, such as distribution centers for Sysco Foods and Orgill wholesale hardware operations, are helping even more, Wallace said.

"In East Texas we're still loaning money and we continue to see deposits grow," he said. Wallace cited the trickle down effect that employers such as Eastman Chemical, Halliburton, LeTourneau Technologies and others have to strengthen the local retail and service sectors of the economy.

B. G. Hartley, chairman and CEO of Tyler-based Southside Bancshares with operations in Longview and elsewhere in East Texas, said the publicly traded institution reported a 78.6 percent jump in net income for the quarter ending Sept. 30. That was a new record for Southside.

The company, which finalized the purchase of a former Fort Worth chain of banks in 2007, reported a 71.5 percent jump in net income for a nine-month period ending Sept. 30.

Hartley said 2008 will be remembered as the year of the credit crisis, liquidity pressures and unparalleled volatility.

"As financial markets became increasingly dysfunctional, the global government response became increasingly aggressive," he said. "Current economic troubles are not the product of recent decisions, but rather are the result of decisions made over many years."

On the national level economic problems have resulted in reactive behavior, Hartley said in the company's quarterly report, adding, "Southside's strong commitment to traditional banking remains unwavering," he said.

"Our posture is best described as both cautious and constructive. We firmly believe in the long-term financial success of our great nation."