Dogwood State Bank, a proposed de novo in Raleigh, N.C., is planning to operate regional Small Business Administration and homebuilder divisions.
Organizers disclosed in a Monday application with the Federal Deposit Insurance Corp. that they plan to lend to home builders in the Carolinas and Virginia. While most of the SBA production will take place in North Carolina, the division will also “target the greater Southeastern United States market,” the application said.
Dogwood State plans to open an office in Charlotte, N.C., to house the SBA and homebuilder finance operations.
The proposed bank’s founders also disclosed plans to raise $75 million in initial capital. The goal is to reach $500 million in assets within the first three years with a longer-term target of $1 billion to $2 billion in assets.
“The bank’s financial plan was developed with a focus on building a healthy bank for the long-term, and not for the purpose of maximizing short-term profits or ‘flipping’ the bank,” the filing said.
Dogwood State, as previously disclosed, will include several executives and directors from Yadkin Financial, which was sold last year to F.N.B. Corp. in Pittsburgh. Steve Jones, a former Yadkin executive, is set to be the proposed bank’s CEO. Scott Custer, Yadkin’s former CEO, will serve on the de novo’s board.
Custer, who joined Live Oak Bancshares in Wilmington, N.C., shortly after Yadkin’s sale to F.N.B. closed, plans to remain at Live Oak. The filing noted that Custer will not run afoul of banking laws as long as the banks do not have overlapping branches and Dogwood State remains below $1.5 billion in assets.
Dogwood State asked regulators to approve its application by Jan. 31 so it can open during the second quarter.
