Proposed North Carolina de novo withdraws application
Community Bank of the Carolinas in Winston-Salem, N.C., which was vying to be the state's first de novo bank since the financial crisis, is withdrawing its charter application.
Organizers said in a press release Friday that they are considering other alternatives.
“There are several directions we could go that are promising. Options are partnering with or acquiring another financial institution," Skip Brown, who was to be the bank's chairman and CEO, said in the release.
The group in March said it had about $18.3 million in commitments from local investors, or 81% of the $22.5 million required for regulatory approval. Those funds are now being returned to investors, though the group said those individuals will be invited to invest in its next venture.
“We’ve spoken to a significant number of our investors and explained why we are going a different direction,” Brown said.
The bank received conditional approval of its applications from the Federal Deposit Insurance Corp. in December and from the North Carolina Office of the Commissioner of Banks in March.
American Bank & Trust in Monroe became the state's first new bank since the crisis when it opened in early May.
Organizers of Spirit Community Bank gave up on plans to open a bank in Statesville, N.C., when they struggled to raise capital. And the group behind Dogwood State Bank in Raleigh, N.C., decided against a charter application and instead agreed to buy an existing bank.