Former Bank of Rockbridge CEO prepares to open new bank
CornerStone Bank has identified sources for $6 million of its necessary start-up funds, according to its president and chief executive officer, David Grist. The bank, which plans to open this fall, will need an additional $3 million to $6 million to meet its capital goals.
Grist resigned last March as president and CEO of the Bank of Rockbridge over what he felt was a lack of commitment to the local community by the bank's parent company, TransCommunity.
In February 2007, TransCommunity decided to consolidate the charters of the Bank of Rockbridge, the Bank of Goochland, the Bank of Powhatan and the Bank of Louisa to form TransCommunity Bank. The four smaller banks are now essentially branches of TransCommunity, which is based in Richmond.
CornerStone, on the other hand, has a strong local connection, with 11 of the 13 members of the board of directors residing in Rockbridge County.
"All decisions will be made here," Grist said.
CornerStone board members Jay Melvin, Keith Holland and Rick Mast all previously served on the Bank of Rockbridge board. Melvin is the new bank's chairman.
CornerStone stock will be available for purchase in early February at $100 per share. However, the minimum number of shares for an initial buy-in is 250, bringing the price to $25,000. Smaller investors may pool their money in order to buy shares.
While raising capital, the bank is also applying for a national charter from the Office of the Comptroller of the Currency. CornerStone expects to receive the charter by June.
The bank will temporarily operate out of a modular unit on East Nelson Street near Don Tequila's. Grist said two permanent sites are under consideration.
CornerStone aims to be in the black by the third quarter of the third year of operation. According to Grist, the biggest challenge CornerStone will face is competition from the 10 other banks nearby.
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