Welcome to the Louisiana Chapter
Don't miss these upcoming events...
- July 24 - 25 Foundations for Success in Commercial Real Estate in Gulfport, MS
- July - Commercial Alternative Mandatory CE and Membership Luncheon in New Orleans
- October - Golf in St. Francisville
- October - CI 102 and Designee CE in New Orleans
LA CCIM Member Recieves Bank Charter
Published: Oct 26, 2010
LAKE CHARLES, La. — The only new start-up bank to open in the United States this year operates out of a secondhand double-wide trailer, on a bare lot in front of the cavernous Trinity Baptist Church. A blue awning covers the makeshift drive-through window.
Called Lakeside Bank, it is run by a burly and balding former tackle for Louisiana State’s football team named Hartie Spence, who doles out countrified humor along with deposit slips and the occasional loan.
“This is the one place where the cause of death is mildew,” he quipped, standing outside the trailer in withering heat.
Asked how his bank in this steaming town of oil refineries and oversize casinos managed to win over federal regulators, Mr. Spence, 70, said, “I’m still thinking it’s my looks that did it.”
The dearth of new banks follows a particularly wrenching period for the industry. As the financial crisis deepened, hundreds of banks and thrifts closed and thousands more were saddled with bad loans and credit card defaults, costing the industry billions of dollars.
As a result, the number of investor groups applying to start a new bank from scratch has dropped precipitously. And for the intrepid few who have tried, regulators — sharply criticized for lax oversight in recent years — are being particularly stingy in granting approval.
So far this year, Mr. Spence holds the privilege of opening the only truly new federally insured bank. (In seven other instances, investors received regulatory approval to buy an existing bank, usually one that had failed, and reopen it).
Of course, many of the nation’s biggest banks were bailed out by the government, and have since rebounded. But since January 2008, more than 280 smaller banks and thrifts have been closed, and many community banks are struggling to recover from the real estate collapse.
Those bank failures have cost the Federal Deposit Insurance Corporation’s fund roughly $70 billion, and not surprisingly, the agency’s regulators are now giving greater scrutiny to new bank applications, according to bankers and industry officials.
Technically, banks obtain charters from their primary regulatory agency, either state banking regulators or, for national banks, the Office of the Comptroller of the Currency. But the charters are contingent on the applicants’ obtaining deposit insurance from the F.D.I.C.
The F.D.I.C. said the reduction in charters simply reflects the effects of the recession on new businesses. “There was considerable interest in forming banks before the economy deteriorated,” said an agency spokesman, David Barr. “In today’s climate we are seeing very little interest.”
However, last year the agency toughened its oversight of new banks, saying banks that had been open for fewer than seven years were “over represented” among failed banks in 2008 and 2009.
The reason, the agency said in a public release, is that many new banks strayed from their approved business plans and ran into problems because of “weak risk management practices,” among other problems.
Ralph F. “Chip” MacDonald III, a lawyer in Atlanta who advises banks on regulatory matters, said he believed the F.D.I.C. had imposed an “unofficial moratorium” on new bank charters, a charge that the agency denies.
Adam Taylor, president of the Bank Capital Group, an Atlanta company that helps investors set up new banks, said he had several recent clients, whom he declined to name, withdraw applications for new banks after it became clear that the F.D.I.C. would not approve them. He said the agency rarely denies charters — a fact confirmed by agency records — but that it places the applications in “purgatory” until the applicants give up.
The number of banks and thrifts — also known as savings and loans — in the United States has been declining steadily for 25 years, because of consolidation in the industry and deregulation in the 1990s that reduced barriers to interstate banking. There were 6,840 banks and 1,173 thrifts last year, down from 14,507 banks and 3,566 thrifts in 1984.
The number of charters has generally declined too, though there have been periodic swings. The lowest number of bank charters granted in any one year was 15, in 1942.
How, then, did Lakeside Bank win this year’s regulatory lottery?
Mr. Spence’s looks aside, he said that regulators were not ready to grant approval until Lakeside had raised enough capital, created a sufficiently conservative business plan and hired an experienced management team.
The initial idea for Lakeside Bank came from a local real estate developer, Andrew Vanchiere, who was dissatisfied with his existing bank
Satellite Maps on Fabric
Published: Feb 08, 2007
Use Explorer to produce high resolution satellite maps, at the CCIM Site To Do Business Web Site. These maps are over-sized, water resistant, printable fabric, designed to fold and fit in your briefcase. Print anything from aerials to blueprints to family photos, even artwork. Direct printing to fabric makes for a unique, durable, tear resistant, flexible, and foldable/fileable and water resistant indoor/outdoor banner-like print. With a bright white base, colors come out vibrant. Imagine having the ability to take your blueprints, aerials, photographs to a meeting, unfolding them, and laying them flat on a table. Unlike printed paper, you never have to hold the document down or worry if it's raining or if someone spills a drink on your fabulous print. First you purchase a high resolution satellite image for $27.96, then you purchase the printing (cost depends on size). Here's how:
- Login at http://www.stdbonline.com.
- At left, click "Aerial Imagery" under "Member Services".
- At left, enter the address under " Search Image Atlas".
- Click "Order Files or Download".
- Select "Keep the Same Area".
- Click "Proceed to Checkout".
- Click the radio button "Yes" at the top for Digital Download.
- Click "Update Cart", then "Checkout".
- Next, purchase your fabric print in the size your want.
- Go to http://www.stdbonline.com.
- At the left, click " Fabulous Prints" under the topic "More Services".
- Click "Click To Order", select your size and "Add To Basket".
- After checkout, you will upload the image you purchased.
- Your map will be mailed to you in a few days.
Published: Feb 07, 2007
Click "Document Library" on the left to download a Membership Application.