A well-known banker is looking to form a de novo in South Florida, joining a growing list of groups seeking to start banks in the Sunshine State.
Keith Costello is associated with a group that submitted an application on Wednesday with the Federal Deposit Insurance Corp. for deposit insurance for the proposed Locality Bank in Fort Lauderdale, Fla. The application wasn’t immediately available.
Locality would be a "digital first" bank with a focus on small and midsize businesses, Costello said.
"I've come to recognize that my next bank would have to be different than my first bank in terms of how we interact with customers," he added.
In Broward County, where Locality would be based, the number of locally owned community banks has decreased from 11 to three in the last five years, Costello said. "I knew there were banks getting acquired but didn’t realize it was that dramatic," he said.
Locality is looking to raise $23 million in initial capital with plans to open by the end of this year.
Organizers said they see a chance to reimagine banking with the de novo.
"We’re trying to build something that creates value for our customers and give them a better shot at success," said Corey LeBlanc, who was recruited last summer to serve as the proposed bank's chief operating officer and chief technology officer.
LeBlanc, who was the chief digital and innovation officer at Origin Bank, said he would like to see Locality pursue collaborative projects with fintechs. "They would help us define products, while we would help them expand through secure access to the bank," he said.
Costello was
Costello had the same roles at Broward Bank of Commerce, which was sold to Home BancShares in Conway, Ark., for
While at First Green, Costello worked with Ken Laroe, who was CEO of the bank’s holding company. The bank was built around support for environmental causes.
LaRoe is also planning a new bank.
Climate First Bank filed an application with the FDIC
Florida has seen a wave of de novo applications in recent years.
The FDIC has signed off on eight applications for deposit insurance from Florida groups since 2017. Three of them have opened their banks: Winter Park National Bank, Gulfside Bank and Gulf Atlantic Bank.
Nationally, three groups have applied for deposit insurance in 2021: Gainey Business Bank in Scottsdale, Ariz., Thrivent Bank in Salt Lake City and Locality. Nineteen applications were submitted last year, though several groups withdrew their applications.
The FDIC approved 16 applications for deposit insurance last year. It has given conditional approval to three more groups so far in 2021.
"It is exciting to see so much de novo activity in Florida," Costello said. "There have been a number of Florida banks launched. That’s a good sign that people in different communities are open to new banks. Success is about management, operating your business smartly with the right people."
