Triad Business Bank said Wednesday it has received regulatory approval for a bank charter from the N.C. Commissioner of Banks.
A group of former NewBridge Bancorp executives announced in April their attempt at launching a startup business-oriented financial institution.
It still requires Federal Deposit Insurance Corp. approval of deposit insurance, as well as the closing of a stock offering that has raised $46 million since June.
The goal is a capital raise of between $58 million and $68 million through common stock sold at $10 a share. There is a minimum $50,000 purchase.
The bank said it remains on course to open its first branch in March. They have settled on a headquarters at 1501 Highwoods Blvd. in Greensboro.
The bank is requesting FDIC permission to open a branch at 751 W. Fourth St. in the western part of downtown Winston-Salem.
“Our vision to create a business bank, focused on serving the needs of small- to mid-size businesses located in the Triad, has been embraced by our community,” Ramsey Hamadi, the bank’s chief executive and chief financial officer, said in a statement.
The bank also plans to open a leased production office in High Point in 2020. There are plans to have between 21 and 25 employees at opening.
Dale Folwell, the state's treasure and chairman of the commission, said the commission's approval came in part because the bank "represents a small but growing trend of new bank formations; especially in the Triad area that represents over 1.3 million citizens with deposit and lending needs.
"The management, staff and board of directors represented a financial, geographical and experience diversity."
Former NewBridge officials Robin Hager would be the bank’s president and chief operating officer, while Wes Budd would be chief credit officer.
Jeffery Montgomery would be chief banking officer following turns as Triad market president for F.N.B. Corp. and SunTrust Banks Inc.
The bank said it will fill in the community banking gaps on the business-lending end by “embracing modern technology, customer service, cultural diversity, conventional underwriting practices and conservative investment principles.”
Hamadi said Triad Business’ board of directors would have equal distribution within the three cities “with a common vision for growth for the Triad.”
Peter Gwaltney, president of N.C. Bankers Association, said that while a $65 million capital raise goal is ambitious, it’s likely what bank executives believe is necessary for a three-city footprint with staffing and equipment.
“It’s a realistic goal, and the organizing group probably had a good bit of the capital resources already identified,” Gwaltney said.
Triad Business said local investors could be attracted to the bank after the loss of the BB&T Corp. headquarters from Winston-Salem as part of the formation of Truist Financial Corp., which debuted Dec. 6 with a Charlotte headquarters.
Triad Business said in a business plan that there could be a “loss of Triad focus” from Truist since “seven of 14 BB&T directors will step down, and only two independent directors are from the Triad.”
“Consolidation has largely eliminated community banks in the Triad,” Triad Business said. “Less than 3% of Triad deposits are held by banks below $10 billion in assets.”
“The recent (banking) consolidations have affected the local communities in that local bank leadership was replaced by out-of-state bank leadership, who have their ultimate focus on their home markets,” Hamadi said.
“People like to do business with people they get to know and trust, and we believe we will be able to recruit and retain talented employees.”