Bob Calvert

Congratulations!
I hear you are interested in starting a new bank!

Here are some guidelines to consider as you get started:

Choose your Certified Management Consultant carefully, based on experience, knowledge, and reputation!
Establish Corporate Governance Standards among and within your group!
Bank Examiners will expect you to act responsibly and expeditiously!
Commit your time, talent, and investment to your new bank venture in order to reap a safe, sound, and beneficial yield!

Why do we need a new Community Bank &
why should I get involved in organizing one in our community?

A recent wave of mergers and acquisitions has left banks under the control of giant national institutions or controlled by out-of-town banks. Some community banks that have been in a community for a long time take local families, small businesses, and farmers for granted. These older community banks forget what it means to listen to their local customers and help them meet their financial needs and achieve their financial goals.

A new Community Bank has to earn the trust of local customers and attract them by dedicated personal service. This is done best with professional, local bankers that live and work in the market area of the new bank. The organizing directors of the new bank are the small business owners and professionals who also live and work in the new bank’s market area. They play an extremely important role in the success of the new bank.

By getting involved as an organizing director you not only assure the best available banking options for yourself and your business but also for your community. The new Community Bank will channel most of its loans to the neighborhoods where its customers live and work, supporting and strengthening the local community.

Your new Community Bank will have the ability to make fast loan decisions when necessary and will put an emphasis on personal circumstances, character, family, and relationship history. You will no longer be just a number on a credit-scoring model!

Get Involved!
Be part of a growing, dynamic force in the life of your community!

New Bank Service Offered to Organizing Group

The purpose of this outline is to detail our service to you and the other organizers for assisting you to obtain a charter for a proposed new state chartered, non-member (of the Federal Reserve Bank), FDIC insured, community (commercial) bank. We can assist you in chartering a new bank holding company. We also work in helping a group start new National Banks; the process is basically the same just different regulators.

The scope of our services to your group will include:

Meeting with the organizers as needed to form the necessary organization of the bank,
Work with the organizers to select an attorney to incorporate the bank, prepare the offering circular, stock prospectus, and serve as the bank's legal counsel,
Work with the organizers to select a correspondent bank or banks to assist with loans for the organizational expenses, lines of credit for the officers and directors, handle cash letters, and generally provide services for an independent bank,
Co-ordinate all meetings and negotiations with the bank regulatory authorities, both Georgia and federal,
Prepare a comprehensive feasibility study (required by the regulators),
Recruit any necessary key senior bank officers (this will be a separate agreement - which will be 30% of each officer's first year salary),
Work with the organizers to select an efficient floor plan, architect, and builder for the bank,
Work with the senior officers to develop the basic bank policies and procedures,
Assist in preparing the bank charter application and the bank holding company application including:

Public Section

I. Financial History and Condition

A.        Pro Forma Statement of Condition - Beginning of Business

B.        Premises to be Occupied by Depository
            Institution (Description of Premises, Premises Owned or Leased,             Temporary Quarters)

C.        Proposed Investment in and Rental of Furniture, Fixtures, and             Equipment

D.        Relationships and Associations with Applicant and Full Disclosure of             Insider Transactions

E.        Organization Expenses

II. Adequacy of the Capital Structure

A.        Proposed Paid-In Capital Structure

B.        Minimum Capital Requirements of Federal/State Law Relative to Organization            of a Depository Institution in this Size Community and with Powers as            Proposed

C.       Estimated Deposit

III. Future Earnings Prospects (3 Year Projection)

A. Estimated Average Deposits and Assets

B. Estimated Income and Expenses

IV. General Character and Fitness of the Management

A.       Directors, Officers, and Shareholders

B.       Board Committees

C.       Fidelity Coverage

D.       Representations

E.       Sale of Credit Life Insurance

V. Risk Presented to the Bank Insurance Fund

VI. Convenience and Needs of the Community to be Served

A.       Description of the Area to be Served

B.       Economic and Demographic Data (Past 5 Years)

1.     Principal Businesses and Industries of the Area

2.    Competition

3.    Environmental Impact

C.       National Historic Preservation Act Requirements

D.       Community Reinvestment Act Requirements

VII. Consistency of Corporate Powers

Confidential Section

I. Financial History and Condition

II. Adequacy of Capital Structure (List of all known subscribers to the capital stock of the proposed bank holding company)

III. Future Earnings Prospects

A. Estimate of Salaries and Wages (3 Year Projection)

B. Estimated Loan Diversification

IV. General Character and Fitness of the Management (Proposed Officers and Qualifications, Bonus Arrangements and Agreements, Stock Option Plans, Proposed Correspondent Banks)

V. Risk Presented to the Bank Insurance Fund (3 to 5 Year Business/Strategic Plan (separate fee for this project) including any planned involvement in non-traditional activities as permitted by Financial Services Reform Act of 1999

VI. Convenience and Needs of the Community to be Served (hours of operation including drive-ins and walk-ups)

Your investment and our fee for working with you will depend on whether you want a holding company at the same time, whether you want a national bank or state bank, whether you need recruiting assistance, whether you want a comprehensive strategic plan, and how soon you want to be in business.

Our fees are on a retainer basis and one-half of our fee is payable upon signing the agreement and prior to beginning any work. Thereafter, fees will be billed monthly and submitted along with progress reports. Final payment will be due when the application(s) in final form is presented to the regulators for their approval.

Call me, Bob Calvert, and we will respond immediately! Let’s get started today!
(850) 579-2400

Calvert Consulting, P.O. Box 8, 2619 Pilgrim Rest Church Road, Alford, FL 32420
(850) 579-2400 Fax (850) 579-2442
bob@bobcalvert.com

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