Gateway Bank and Trust Co., a two-year-old North Carolina bank with $80 million of assets, is taking the unusual tack of expanding both its fee income, through insurance and investment product marketing, and its traditional banking services.

"Most start-up banks will focus on loans and basically bulk up in size, sort of as a one-product operation," before turning to fee businesses, said John Moore, an analyst at Wachovia Securities. "That's not their focus here - they want to build fee income at the same time."

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