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Group launches new bank
By Laura Ruby
Staff Writer
Three decades ago, Fauquier County was home to seven community banks. Today, one remains.
A group of investors with decades of banking experience is looking to change that with plans to open a new community bank later this year.
According to Michael A. Ewing, president and CEO of the new venture, organizers are raising capital to launch Oak Hill National Bank.
Being organized by past officers and members of the former board of Marshall National Bank and Trust Company, Oak Hill National Bank will be “a community bank offering personalized, relationship-based service customized to meet our clients' individual needs rather than selling them pre-packaged products,” according to Ewing.
“Many of our directors and officers worked together for many years at Marshal National Bank and Trust Company and are well placed to understand and meet the demand for a new community bank providing a local focus and attention,” Ewing said, noting that with branches slated for Warrenton and Marshall, the bank will feature state-of-the-art technology, access to 35,000 ATM machines for free use, and an excellent staff.
When the Marshall bank was sold to PNC Financial Services Group Inc., in March 2007, there were concerns among board members about how the change would impact customers, Ewing explained.
“The board was very concerned about the loss of local decision-making, loss of many good-paying jobs, and the huge distance between the customers and the decision-makers due to layers of bureaucracy and rigidly applied policies,” said Ewing.
Banking, he said, is well described as a three-legged stool, with customers, employees and shareholders each making up one of the legs. “If the shareholders are making money on the backs of the employees, the employees will go elsewhere, and then the customers are not getting good service. If the pricing for customers is too high, the shareholders might make money in the short term, but eventually, customers will go elsewhere. You need to maintain balance between all three constituencies.”
Noting that the community has been supportive of the new venture, Ewing said that there are benefits to starting a bank at a time with the financial industry is down. Hiring talented people and picking up business from banks in trouble offer potential for Oak Hill.
“Another thing that's important in today's market is asset quality. We don't have any bad loans on the books,” Ewing said, pointing out that they don't plan to add any. “[The loan] has to be good for the borrower and the lender. If you make somebody a loan that they can't pay, you're not doing them a favor. You're hurting them. On the other hand, we'll do everything we can to find a solution to help somebody.
“We've been in this market. We know the customers we'll be working with, many of whom we've been working with for decades.”
Starting a new bank, as one might imagine, is a challenging proposition.
Having started with a business plan, created by years of experience in the banking industry, organizers are raising funds and clearing regulatory hurdles, as well as developing branch locations and hiring employees.
“It has put us in the position of what a lot of our small-business customers go through” Ewing said. “We've got a lot better perspective of what it takes to start a small business. Everything needs to be put in place, from telephone service to core processing services to hiring people to finding locations.”
During this organizational process, the bank is looking to raise between $13 million and $18 million for start-up costs, real estate purchases, customer loans, investments, and other general banking purposes. Fifty-one founding investors have contributed $50,000 each, raising $2.55 million, Ewing said. “Our business plan calls for $13 million. If we raise more than that, it gives us an opportunity to grow a little bit faster,” he said.
For more information, visit www.oakhillnationalbank.com .
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