New bank in Lexington
is state's first this year
 |
| The bank hopes to find a niche in Rockbridge County as a small bank with local friendly service. (ALEXANDRA SCAGGS/ The Rockbridge Report) |
About 500 people attended Saturday’s opening ceremony for CornerStone Bank, the first bank to open in Virginia and only the third in the nation this year.
T. David Grist, the bank’s president and CEO, said that nearly 100 people have opened checking accounts with the bank in its first two weeks.
“That’s almost spectacular, actually,” he said. The company will file its first statement of deposits with the Federal Deposit Insurance Corp. in April.
CornerStone started accepting deposits on Feb. 17, immediately after approval from the Office of the Comptroller of the Currency.
Meanwhile, 16 U.S. banks have shut their doors in 2009, and two of those failed the day before CornerStone’s opening ceremony.
Grist said he hopes that the bank can move from its current location, a trailer in Rockbridge Square on East Nelson Street in Lexington, to a permanent office the bank’s officers hope to build at the corner of Nelson Street and South Main Street.
After a debate that stretched over several months, City Council last week removed an easement there, a step that could enable the bank’s projected design to proceed.
City Manager Jon Ellestad said he thought that outcome was satisfactory.
“I felt that the City Council needed to give up something, since we had placed the traffic signal on the easement,” he said. That addition to the parcel that was under easement must stay until any future development is approved by the council, Ellestad said.
Saturday’s official opening featured representatives from Segway of Richmond, Auto Recyclers of Buena Vista and Shenandoah Harley-Davidson, none of which, Grist said, was a sponsor. The company conducted a $1,000 raffle, won by John Gunner of Lexington.
Camille Duncan said her family went to the opening for free food and fun but not necessarily to open an account.
“I guess we’ll see what they offer,” Duncan said.
Investor and account holder Richard Corrington said that he didn’t see many differences between CornerStone’s accounts and those of larger banks.
CornerStone requires a minimum opening balance of $50 for its most basic personal checking accounts. Its basic account services include no monthly maintenance fee, plus free online banking, bill payment and check cards.
Corrington said he thinks that CornerStone fills a niche in the county.
“Lexington and Rockbridge County, they’re somewhat self-contained,” he said. “[If] suddenly I have a situation that I want to talk to a bank person about, I can talk to somebody I’ve known for 25 years … that’s a plus.”
Before opening, the bank raised more than $9.4 million by selling more than 940,000 shares of common stock to investors. The board of directors holds 30 percent of CornerStone’s total stock. Board member and local business owner Keith Holland said that about 70 percent of the company’s 175 shareholders are from the county, and the rest are from nearby areas.
“That’s the whole purpose,” Holland said, “to create a service for the citizens of Rockbridge County and plus to make a profit for the shareholders.”
Board members and bank principals Holland, Rick Mast and Jay Melvin, all local business owners, had served on the board of the new Bank of Rockbridge, until the CEO proposed collapsing the charter and selling to a chain in 2007. They resigned the next day. Grist later resigned from his post at Bank of Rockbridge for similar reasons.
“We want a local bank that will serve local people,” Holland said.
And Grist believes that CornersStone’s wide network of local connections will help.
“Our board of directors has a tremendous sphere of influence,” he said.
Produced by
Washington and Lee
journalism students.
Lead Supervisors:
Prof. Brian
Richardson
Prof. Indira Somani
Editing supervisor:
Prof. Doug
Cumming
Technical supervisor: Michael Todd