April 2024Rob Schwister

CEO Thoughts: de novo Banks

de novo – adverb or adjective

: over again: anew

A de novo bank is a bank that has not been acquired through purchase and is newly chartered by the Federal Deposit Insurance Corporation (FDIC).

When I left the manufacturing industry and started my banking career nearly 25 years ago, there were 8,198 FDIC insured banks. At the end of 2022, there were only 4,135. From the year 2000 until 2009, there were 1,267 new de novo charters. And from 2010 until 2022, there were only 62. Gainey Business Bank was one of only 14 new charters in 2022.

Three things are clear: the total number of banks has declined because of mergers, acquisitions, and failures. Second, it has clearly become more challenging to start a new bank. And finally, consumers and business owners have less choices when it comes to banking. So, why did the founders of Gainey Business Bank decide to go through the work of chartering a new bank?

According to our original offering circular, “the Bank’s organizers believe that the Bank’s proposed primary market area is in need of a new community bank.” Simply stated, Gainey Business Bank was chartered to offer local business owners the opportunity to work with professional bankers who provide a full complement of highly individualized financial products and services. Our decisions are made here, all our employees live, work and volunteer here, and our profits stay here.

Our Founders, investors and employees all believe that business owners deserve better, and we all have acted on our entrepreneurial spirit and started something new. If you or someone you know owns a business, please reach out to one of our bankers and see what Gainey Business Bank can do for your business. We are ready to serve.