De novo institutions

Two groups have announced plans to open banks in the state, and several others have had talks with regulators. Is there room for more?

Spirit Community Bank would be based in Statesville, a community about 45 miles north of Charlotte. A separate set of organizers has already shared plans to open a bank east of Charlotte.

Organizers aiming to open a de novo just outside Charlotte say there's a need for a new community bank after several years of consolidation in the market.

The as-yet-unnamed bank, which would be based near Charlotte, N.C., would be led by Randy Helton, a former CEO at American Community Bancshares.

Additional consolidation would not strengthen the industry, but would instead leave consumers with less choice and reduced access to financial services.

At least eight banks are in various stages of formation, including two that have opened. While that is nowhere near the de novo activity of the early 2000s, it's a positively brisk pace compared with the standstill that existed for many years after the financial crisis.

Its small, locally owned banks were as decimated after the crisis as in any big city. But community bankers say changes to the economy and their lending practices offer them a shot at challenging the big banks that dominate their market.

Consolidation can help community institutions better tackle the many regulatory and financial challenges facing them.

Marathon International Bank would target the Ethiopian community with specific advertising and educational programs.

Organizers of Sterling Bank have filed an application with the FDIC and have set a $20 million capital target.

Endeavor Bank, which raised nearly $27 million, will become the second new bank to open in California in the past year when it debuts next week.

A group has filed an application for form a bank in Birmingham, a city with a large pool of bankers and a steadily growing economy.

The proposed CommerceOne Bank in Birmingham, Ala., would be run by former executives at First Partners Bank, which was sold earlier this year.

New York Venture Bank would be run be a former Square 1 executive and would feature former CFPB deputy director Raj Date on its board.

Acting Comptroller of the Currency Keith Noreika has been the ultimate disruptor, bucking the normally low-key profile of interim regulators.

Endeavor Bank in San Diego aims to be the third new bank to open this year. There is hope that as many as eight new institutions could open in 2018.

While increasing de novo activity is encouraging, the processes of chartering a bank and applying for deposit insurance are more onerous, lengthy and costly than they need to be.

Consolidation has led to too few community banks, which is amplified in areas where capital is needed most.

David Dotherow, CEO of the newly formed Winter Park National Bank, stresses the need for strong management and a straightforward business plan when applying for a charter.

A few years after co-founding Level One Bank, CEO Patrick Fehring decided to survey his employees. It turned into a wake-up call.