The biggest new bank to gain regulatory approval anywhere in America in more than a year will open its doors to the public in downtown Chattanooga on Monday.
The organizers of Rockpoint Bank, which derives its name from the Native American name of Chattanooga meaning "rock coming to a point," hope to make an important point in the local banking scene with the city's newest bank.
"With local decision making and a mission that is focused on Chattanooga, RockPoint has the ability to be nimble and responsive while offering competitive technology and high-touch customer service," said Hamp Johnston, RockPoint's president and CEO who helped organize the new bank over the past couple of years. "We welcome the opportunity to talk about what makes us different and allows it to fill a void in the local banking landscape."
Johnston said Chattanooga is an attractive and growing market for banks, which has led many national and regional banks to buy or open up branches in Chattanooga and capture most of the local market. Only about 5% of Chattanooga's $12 billion of bank deposits are now controlled by locally owned banks headquartered in the city, down from 20% six years ago.
Among the 27 other commercial banks operating in metropolitan Chattanooga, only First Volunteer and Millennium Bank are headquartered in Chattanooga, although most of the other banks are based in Tennessee or neighboring states.
RockPoint is the first new de novo bank to be chartered in Chattanooga since the former CapitalMark bank began operations in 2016. The Nashville-based Pinnacle Bank acquired CapitalMark in 2015 for $187 million.
Johnston, who was formerly the market executive for JP Morgan Chase in Chattanooga and previously worked as a manager for First Tennessee Bank (now First Horizon), said national and regional banks are more centralized and decision making is often done outside of Chattanooga.
"They are good banks with good people, but they do business differently than what we will," he said. "We have a Chattanooga strategy that is entirely focused here."
Staff photo by C.B. Schmelter / Senior Clinet Specialist Lataucha Twilley, left, Universal Banker Sarah Wyatt, Vice President and Financial Center Manager Stacey Beene, Universal Banker Tanner Harris and Senior Vice President and Treasury Management Officer Caroline Capdeboscq pose at RockPoint Bank on Friday, March 19, 2021 in Chattanooga, Tenn.Johnston has assembled a veteran crew of 20 local bank employees who are working out of a 10,000-square-foot office in the first two floors of the 401 Chestnut Building. He expects to soon grow the staff to about 25 employees, but RockPoint will use technology, personal visits and courier services, rather than adding more branches, to serve the market for the foreseeable future.
The new bank will be primarily focused on local businesses and professionals and, as a locally owned and managed bank, will be able to offer personalized and local decision making, Johnston said. Within the next decade, RockPoint officials hope to grow RockPoint into a billion-dollar-plus bank capturing at least 10% of the local banking market.
RockPoint raised more than $33 million in equity capital from 350 investors, most of them in Chattanooga, and officials hope to attract business and deposits from those investors as well as many other Chattanooga businesses and individuals eager to bank with a local institution.
Camille Daniel, chief banking officer who is leading RockPoint's business development efforts, said organizing the bank during a pandemic has been a challenge. But it also now offers an opportunity as many businesses prepare to move ahead again with projects as the economy rebounds this year.
"We are looking forward to shifting our focus to assisting customers with their banking needs," Daniel said
Deposits in RockPoint are insured by the FDIC up to $250,000 for each depositor and the bank will begin opening accounts for shareholders and other customers on Monday.
Stacey Beene, the bank's financial center manager, said RockPoint is using "universal bankers" to meet and handle walk in customers at the downtown office. The universal bankers sit behind desks and use computer screens to discuss and handle transactions, rather than conventional teller booths many banks used to use for branch activities.
"It's been a lot of work getting ready, but we are very excited about opening up Monday morning,"Beene said.
RockPoint will be open weekdays from 8:30am to 5 p.m. The downtown location includes a drive through and customer parking, and RockPoint plans to begin a courier service this summer. For automated teller service, RockPoint is paying the fees for customers to use other bank ATMs to transact business, Beene said.
Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340.
Staff photo by C.B. Schmelter / (Back) President and CEO Hamp Johnston, left, Chief Finacial Officer Patrick Jensen, (front) Chief Banking Officer Camille Daniel, left, and Chief Credit Officer Kerry Riley pose at RockPoint Bank on Friday, March 19, 2021 in Chattanooga, Tenn.