Independent Banker - July 2017 - 37

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to FDIC data. Ed Carpenter, who
heads the private equity fi rm associated
with Core Commercial, was
unavailable for comment. Another
would-be de novo, Pacifi c Metro,
recently withdrew its application
for confi dential reasons. The chief
executive associate with Pacifi c
Metro declined to comment through
a spokesperson.
Certainly it helps to have a good
relationship with regulators. But
while regulators can be very helpful
for bankers going through the de
novo process, Weinstock also cautions
bankers not to confuse them
with consultants. Some banks think
they can ask the regulators how much
capital they need. Instead, you need
to tell them how much capital you
need to run your business plan, and
they'll audit you to make sure they
agree, he says.
For its part, the FDIC has made
a number of changes over the past
several years designed to help spark
de novo foundation. For example, it
reduced the de novo period to three
years from seven years and updated
its guidance on regulatory expectations
for new banks. The FDIC
also hosted information sessions to
help prospective institutions better
understand how to apply for deposit
insurance, and in April, the agency
published the fi nal version of its longawaited
handbook to help de novo
banks apply for deposit insurance.
Even so, the FDIC's expectations
for de novo banks are too onerous,
according to Chris Cole, executive
vice president and senior regulatory
counsel at ICBA. He contends
that more regulatory relief, as well
a more favorable business environment,
is necessary for de novo
activity to return in a meaningful
way in the United States.
Indeed, though they are encouraged
by the progress, several
industry observers don't expect to
return to the heyday of new bank
charters any time soon, given the
new regulatory, economic and competitive
realities.
" I just don't see us returning to
those days, given how the business
environment has changed, " says Cole,
" but I can see it getting back to the
days when it was 30, 40 or 50 a year,
and not just dribbles like we are seeing
now. "
Cheryl Winokur Munk is a writer in
New York.
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__________________
__________
_________________
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)
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-CHRIS COLE, ICBA

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Independent Banker - July 2017

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