Fidelity & Co., a mortgage banking and financial services company, plans to charter a new private bank.

The firm formed Private Bancshares last week and is gathering a board of directors.

The bank would reduce the company's cost of funds and offer relationship banking, investment advisory, and trust services, the company said. Fidelity specializes in residential mortgage loans for homes valued more than $250,000.

Fidelity has also hired Joseph K. Agostino as executive vice president and chief financial officer. Mr. Agostino, formerly CFO of First Union National Bank of Georgia, also was chief executive officer of Fidelity National Bank's mortgage company and director of bank card operations.

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