FDIC gives conditional OK to new bank in NHBy MICHAEL COUSINEAU
New Hampshire Union Leader
March 17. 2015 6:11PM
Primary Bank announced Tuesday it received a key conditional approval from the feds in its bid to open the first new bank in New Hampshire in seven years.
The Federal Deposit Insurance Corp. gave its conditional blessing to the Bedford bank’s application to insure customer deposits — only the second new bank in the nation to gain approval in more than four years.
The bank is projected to open in May or June — perhaps a month later than earlier projected depending on how quickly it can get its computer system up and running once it gains final approvals, said bank President/CEO Bill Stone.
The bank already received conditional approval from the state banking department.
“The state approval requires we have FDIC Insurance,” he said.
The bank, which includes former Gov. John Lynch as a board member, needs to raise at least $22 million to gain final approvals.
It has organized investor meetings for March 24, 25 and 26 at the Manchester Country Club. Stone hopes to raise what’s required by April 30.
Greg Hernandez, an FDIC spokesman, confirmed the FDIC approval.
“New bank formation helps foster a vibrant community banking sector,” Hernandez said in an email. “The FDIC’s role in the creation of new banks is in the approval of deposit insurance.”
The last newly chartered bank to open was Bank of Bird-in-Hand, a Pennsylvania bank that began operating in November 2013, he said.
Primary Bank was only the second new bank to get FDIC approval in more than four years. (Some investment banks don’t have FDIC insurance, Hernandez said.)
New Hampshire saw its last new bank open in 2008, Optima Bank & Trust.
State banking officials cited the recession and financial crisis as reasons for the lack of new banks in recent years.