Why a metro Atlanta investor group is starting a new bank

The new bank recently cleared key regulatory hurdles.

The Federal Deposit Insurance Corporation approved its application for federal deposit insurance on Dec. 3, an agency spokesperson confirmed to The Atlanta Journal-Constitution. The Georgia Department of Banking and Finance also gave the bank “conditional approval” on Dec. 3, an official said.

“The community bank — where people know who you are, understand your business, have a relationship with you — that’s the void that we feel is missing in the banking sector due to all the mergers and acquisitions,” said Ryan C. Floyd, president and co-founder of Georgia Skyline Bank. Floyd previously spent 16 years working for The Piedmont Bank, which United Bank recently acquired.

The team behind Georgia Skyline Bank expects to complete fundraising early next year. Floyd said the bank has $20 million in commitments, with the goal of raising $25 million to $35 million.

New bank formation has stagnated across the country since the Great Recession, which led to hundreds of bank failures nationwide. More stringent regulations and higher compliance costs are among the factors that limited growth following the financial crisis, when Georgia led the nation in bank failures.

In the late 1990s, the Office of the Comptroller of the Currency received more than 100 de novo charter applications each year, said Jonathan Gould, comptroller of the currency. He addressed the topic Dec. 8 at the Blockchain Association Policy Summit, according to a summary of his remarks.

In the early 2000s, there were nearly 50 applications per year, Gould said. But from 2011 through 2024, bank charter applications fell on average to fewer than four per year.

In Georgia, only five new banks have started since 2016, according to data provided by the Georgia Bankers Association. The most recent, Moultrie Bank & Trust in South Georgia, was established in May 2022.

“This shortage of applications was not due to lack of demand,” Gould said. “Rather, regulators too often gave would-be organizers clear signals that applications for federal bank charters and federal deposit insurance were not welcome, would be indefinitely delayed, and would ultimately be denied if not withdrawn.”

Now, under a more business-friendly Trump administration, regulators are signaling an appetite for new banks.

“A robust pipeline of de novo banks is crucial to a healthy financial system,” Gould said. “New charters ensure a diverse banking sector, as new entrants bring new ideas, new products and new services to U.S. consumers.”

Another new Georgia bank is attempting to start, Private Bank & Trust of Gainesville, which submitted an application to the FDIC on Nov. 28.

A September bulletin from the Georgia Department of Banking and Finance shows a few new applications to reserve names, suggesting others are floating the idea for a new bank.

The bump in activity comes amid a period of rapid consolidation within the banking industry. For example, a $8.6 billion deal was announced this year to combine Columbus-based Synovus Financial Corp. and Nashville-based Pinnacle Financial Partners.

The number of Georgia banks has dwindled significantly over recent decades. About 130 banks are now headquartered in the state, according to Tripp Cofield, president and CEO of the Georgia Bankers Association. That’s down from more than 300 during the mid-2000s.

Today, metro markets such as north Fulton, Forsyth County, Cherokee County and parts of Gwinnett County have strong populations but lack locally headquartered banks, according to the Georgia Bankers Association.

“There’s just opportunity out there. There are fewer banks,” Cofield said. When new banks are formed, he added, it increases competition and gives consumers more choices. “I think it’s good for everybody, for the industry and for consumers and communities.”

Georgia Skyline Bank plans to offer a variety of commercial loans, along with deposit products including checking and savings accounts.

Plans include building a bank headquarters and branch at 1095 Old Roswell Road, about 2.5 miles west of North Point Mall. The bank team is occupying temporary space nearby until it is built.

Two other former Piedmont Bank executives are expected to serve in leadership roles. Phil Resch is expected to become chief financial officer, and Nick Marsit is expected to serve as chief credit officer, according to the FDIC application.

Directors include: Adam Caskey, Heath Fountain, Jack Godfrey II, Veronica Hicks, Tracy Murgash and Charles Woolley, per the application.

Floyd said the bank aims to grow to $250 million to $300 million in assets by the end of its third year.

“What’s great about being a community bank is serving the entrepreneurs and business owners in our area and finding a way to say ‘Yes,’” Floyd said. “That’s what I love about being a community banker. It’s helping people problem solve and get to their financial goals.”