Fight looms, confusion inevitable as
two Texas banks now share ‘Vista’ name

“We changed our name to soar above the crowd…to set ourselves apart.”
– Security State Bank

A new website for Security State Bank & Trust says the bank changed names to “soar above the crowd” and to “set ourselves apart.” But there’s a problem. The name they picked, Vista Bank of Texas, is almost identical to another bank in the same state, Vista Bank Texas.

Key Question: Who was first?

It’s hard to say.

Vista #1: Vista Bank Texas
Service Area: 6 branches around Houston
Claim to Name: It doesn’t look like this bank had been using the Vista name for very long. They launched their current website in December 2007.

Vista #2: Vista Bank of Texas
Service Area: 8 branches around the Texas panhandle
Claim to Name: In their trademark application on file with the US Patent & Trademark Office, they say the first time they used the name was June 2008. (Click here to view the USPTO trademark entry.)

Bottom Line: This may be a case of unfortunate timing and a terrible coincidence, but these banks are in for big trouble. It doesn’t matter that they are 500 miles apart. In today’s wired world, people are going to get confused.

Prediction: Financial trademark lawsuit in 3…2…1…

And it all may boil down to a difference of just six months and the simple preposition “of.” Maybe one of them should have put “First” in their name so we’d know which was the First Vista Bank of Texas. Joking. Just joking…

A creative solution to the problem would be for the two Vista Banks in Texas to merge, or create some sort of shared branching concept. Maybe you’ve heard the old adage, “The quickest way to eliminate my enemy is to call him my friend?” Don’t hold your breath though. This isn’t very likely.

A credit union in California holds the trademark for the word “Vista” in the USPTO’s financial services category, but a merger in 2007 between Vista FCU and Partners Credit Union name may make the trademark moot (click here to view the USPTO trademark entry.) Because the merged credit unions kept the “Partners” name, it’s unlikely either of them will step-up to defend this trademark.

More on the “Vista” name:

• It appears that Security State Bank & Trust bought their new URL, www.vistabank.com, for around $2,000 from a cybersquatter. The domain had been put up for sale after another Vista Bank gave it up a few years ago.
• Ironically, Security State Bank & Trust was also a name that was shared by at least two banks — the one that just became Vista Bank of Texas and another one in Montana.
• There is another Vista Bank in South Carolina.
• Earlier this year, The Financial Brand wrote about a two-year old bank in California changing names to Sierra Vista.

“’Folsom Bank of Commerce’ is too many consonants and too many syllables.”
– Greg Patton, President
Commerce Bank of Folsom

Effective August 1, 2008, Commerce Bank of Folsom will be changing its name to Sierra Vista Bank. The bank’s official explanation is that the new name is more reflective of the areas they serve as the bank expands outside of Folsom.

“No one wants to come into a bank that has the name of another city on it if they are in a different city,” said bank president Greg Patton. (Did anyone tell him that Sierra Vista is the name of a city in Arizona?)

But that’s not all he said. Apparently the old name was a weighty linguistic anchor: “Folsom Bank of Commerce (sic) is too many consonants and too many syllables.”

Huh? Too many consonants? The old name had 14 consonants and 6 vowels. The new name has 9 consonants and 5 vowels. That’s five fewer consonants. But is that really any better? Does the number of consonants a name has really have any bearing on its appeal or appropriateness?

Syllables are another story. At least one can argue that a name with too many syllables is too long. But here’s the funny thing: The new name has exactly as many syllables as the old one – six.

The bank is keeping the same basic logo and colors, but is changing the typeface.

Bottom Line: Geographic names cut both ways. They say you’re local, but they can become a barrier to growth down the road.

Dave Alford, a bank consultant in the Folsom area commenting on the Sierra Vista name change, offers this advice: “I’ve always been a fan of the geographically generic name. I am a firm believer in the generic name so that you can open in any market.”

Good advice Dave.

UPDATE: August 9, 2008 - Sierra Vista changes its stock ticker to OTCBB SVBA. The old ticker symbol was OTCBB CBFM.