Commissioner Approves First De Novo Bank Since 2009: The Bank of Austin, Austin, Texas
Banking Commissioner
Subject to the granting of deposit insurance by the
Over the last eight years, bank charters in
"The formation of this new state bank is a very positive sign that community leaders are again seeing the advantage of a locally owned and managed financial institution. The
OFFICIAL ORDER OF THE BANKING COMMISSIONER
No. 2017-007
IN THE MATTER OF:
CHARTER APPLICATION FOR THE BANK OF
BEFORE THE BANKING COMMISSIONER OF
ORDER APPROVING CHARTER
By application accepted for filing on
1. The Bank has properly published notice of the charter application as required by Section 32.004 of the Texas Finance Code (the "Code") and 7 TAC Section 15.5. No comments or protests were received in response to the publication;
2. The convenience and advantage of the public will be promoted by the establishment of the Bank;
3. The organizational and capital structure and amount of initial capital is adequate for the Bank's business plan;
4. The anticipated volume and nature of business of the Bank indicates a reasonable probability of success and profitability based on the market to be served;
5. The Bank's officers and directors as a group have sufficient banking experience, ability, standing, competence, trustworthiness, and integrity to justify a belief that the Bank will operate in compliance with the law and that the success of the Bank is probable;
6. Each principal shareholder of the Bank has sufficient experience, ability, standing, competence, trustworthiness, and integrity to justify a belief that the Bank will be free from improper or unlawful influence with respect to the Bank's operation in compliance with the law; and,
7. The organizers are acting in good faith.
THEREFORE, I,
A. The Bank's initial paid-in capital, net of all organizational and preopening expenses, must be not less than
B. For a period of three years after approval of the charter, the Bank will provide the Banking Commissioner of
D. For the calendar years ending
E. The Bank will not declare or pay dividends for the first three years of operation without the express written approval of the Commissioner;
F. The Bank will engage the services of an independent auditor to conduct a full-scope audit, and render an unqualified audit report for each of the first three years of operation;
G. The Bank will maintain adequate blanket bond coverage and at least
H. The Bank will develop and implement a Directors ' Training Program before the Certificate of Authority is issued. This Program will include, at a minimum, a review and assessment of the directors ' training needs, identification of training providers, and a proposed training schedule for each director which will include training for the Bank Secrecy Act and the
I. The Bank may not exercise its trust powers without first complying with the requirements of 7 TAC Section 3.23;
J. The Bank will provide evidence of insurance of its deposit accounts by the
K. For the first two years of operation, the Bank will provide at least 30 days prior notice of any material change in the information technology plan which was reviewed as part of the charter investigation, including any change in customer electronic or internet account access or expansion in activities permitted through such access. The review period will commence upon receipt by the Commissioner of sufficient documentation to permit a review, and the proposed change[s] will no t be implemented should the Commissioner object.
IT IS THEREFORE ORDERED that the application for a
Signed in triplicate original this 8th day of May, 2017.
/s/
Banking Commissioner of
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