The biggest new bank to open in Chattanooga since before the Great Recession is preparing to open later this year, although the coronavirus pandemic has pushed back the initial stock offering period.
The organizers of the new RockPoint Bank said Friday that regulators have given conditional approval for the new bank, which will open in leased space in the 401 Chestnut building in downtown Chattanooga.
RockPoint, which derives its name from the Creek Indian word meaning "rock rising to a point," will be one of the biggest banks to open in Tennessee in the past decade.
The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp., gave conditonal approval for the new bank, one of only a few proposed banks nationally that has been granted such approvals. Final approval and authorization will be granted once all pre-opening requirements are met, including the ongoing raise of a minimum of $30 million in capital.
"These conditional approvals are significant in our journey to start a new bank that will focus on small to medium businesses in Chattanooga," said Hamp Johnston, the CEO of the proposed new bank. "The approvals allow us to move forward with our plans to open the bank later this year."
AT A GLANCE
Name: RockPointInitial capitalization: At least $30 millionLocation: 401 Chestnut StreetCharter: Federally chartered bank authorized by the FDIC and Office of Comptroller and slated to open later this yearFocus: Serving small and medium-sized businesses and consumersCEO: Hamp JohnstonOther organizing directors: Harshad Shah, president and CEO of Hamilton Plastics; Ben Brock, former president and CEO of Astec Industries; John Haddock, chief financial officer of Transcard Payments, LLC; Charlie Hunter, president of Hunter Oil; Deston Hutcherson, owner and manager of C&D Recycling, LLC; Bill Kilbride, the former president of the Chattanooga Area Chamber of Commerce and TVA board member; Dallas Joseph, chief operating officer and chief financial officer for Baylor School; Cindy Lee, president and CEO of LYNC Logistics, LLC; and Dr. Mark McOmie, owner of McOmie Family DentistryWeb site: www.rockpointbank.com.
The executive staff of the organizing group forming RockPoint Bank in Chattanooga include, from left, Kerry Riley, chief credit officer; Camille Daniel, chief lending officer; Patrick Jensen, chief financial officer, and Hamp Johnston, chief executive officer in February 2020 / Contributed photo from RockPoint Bank
Johnston, who was formerly market executive for JP Morgan Chase & Co. for the past five years and a former manager at First Tennessee Bank, is leading the organizing effort for RockPoint, which has also recruited a number of veteran bankers for key positions.
In mid-February the organizers announced a $30 million equity raise, but Johnson said the strong initial response from the community was interrupted by the COVID- 19 pandemic. Despite the delay in the equity raise for the new bank, one of the organizing directors and investors, Bill Kilbride, said "recent events have not changed the long-term need for RockPoint Bank."
Even with 28 commercial banks competing for the $10.2 billion in bank deposits in metropolitan Chattanooga today, RockPoint organizers insist there is a need for a locally focused bank to serve small and medium size businesses.
"We have an opportunity to fill a void in the local banking landscape and believe it is more important now than ever," said Kilbride, a former Mohawk Industries executive who was later CEO of the Chattanooga Area Chamber of Commerce and is currently a director of the Tennessee Valley Authority. "In fact, community banks have demonstrated their ability to respond to their clients quickly during this pandemic."
The bank's new logo, which was developed by the local design firm Widgets & Stone, reflects the skyline of the aquarium and refers to RockPoint as "Chattanooga's bank. "
Camille Daniel, a 24-year veteran banker who was previously a senior lender at First Tennessee Bank, will serve as RockPoint's chief lending officer and said the new logo "reflect our commitment and ties to this community and its continued growth and success."
RockPoint will be the biggest new bank organized in Chattanooga since the former CapitalMark began in 2007 by initially raising $35 million in stock. CapitalMark, which later raised another $10 million, ultimately merged with Pinnacle Bank in 2015.
Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340
RockPoint Bank logo