Group applies with FDIC to open bank in New Hampshire

Register now

A group in New Hampshire is looking to open the state’s second de novo bank since the financial crisis.

Organizers of Millyard Bank in Nashua filed an application with the Federal Deposit Insurance Corp. on Tuesday. The proposed bank also has applied with the New Hampshire Banking Department.

The proposed bank would be led by G. Frank Teas, who was the founding CEO of Nashua Bank in 2007. New Hampshire Thrift Bancshares, the parent of Lake Sunapee Bank, bought Nashua Bank in 2012 for $19.4 million.

Teas, who recently served as chief commercial banking officer at Northway Bank in Bedford, N.H., said in an interview that organizers plan to raise $20 million in initial capital. The goal is to open the bank next summer.

Nashua developer John Stabile is set to become the bank’s chairman. Lorin Rydstrom has agreed to serve as vice chairman.

Organizers want to focus on making loans no larger than $3 million, with an emphasis on personal service.

“There were six or seven community banks in the market six years ago, but they were rolled into larger banks,” Teas said. “Small and medium-size businesses don’t have the capital they need to grow.”

Primary Bank opened in 2015, becoming New Hampshire’s first post-crisis de novo.

Primary “will be a friendly competitor, but the demand is strong for another community bank,” Teas said.

Millyard's organizers have been working with regulators as they raise capital.

“The regulators have been great,” Teas said. “They’ve asked great questions about what we’re trying to do. … I think we’ve painted a good picture. We’re look forward to working with them hand in glove.”

For reprint and licensing requests for this article, click here.