Progress Bank plans to launch local offices

Company gets federal OK to continue pursuit of charter

Progress Bank and Trust is planning to open its first offices in Huntsville and Decatur in January, according to organizers.

David Nast, president and CEO, said that the startup bank has received notification from the Federal Deposit Insurance Corp. that it may continue its pursuit of a new state banking charter. It also has been approved to raise capital by the State Securities Department.

"Receiving a substantially complete opinion on our charter application from the FDIC is a major milestone for our new company,'' Nast said. "While we still have work to do to obtain final approval on our charter, this initial approval speaks to the dedication from our management team and directors over the past six months."

"The leadership team is committed to building a high-touch, high-tech community bank headquartered in North Alabama and managed by experienced bankers who live in our community.''

The approval from the State Securities Department gives Progress Bank (In Organization) the ability to make its offering circular public and begin raising capital. Nast said the bank's business plan requires it to raise between $27 million and $35 million in capital. He said the bank has already raised half of its minimum capital requirement.

"The growth in our markets combined with the need for a locally headquartered bank give us confidence in our long-term strategic plan for Morgan and Madison counties," Nast said. "We appreciate the positive response from our community and potential investors."

Lee Hoekenschnieder, Huntsville president and general banking executive, said the community has welcomed the idea of a new local bank.

"People want a local bank where all decisions are made here and that is run by people who live here in the community,'' said Hoekenschnieder.

The organizational office is at 120 Holmes Ave., Yarbrough Office Center Suite 302. The bank's Huntsville office will be at 201 Williams Ave. The Decatur location will be at 255 Grant St., Suite 100.

Other bank organizers include Trey Bentley, Sheila Brown, Jim Caudle Jr., John Eyster Jr., Eric Janssen, MD, Bhavani Kakani, Roger Pangle, Charlie Vaughn and Larry Weaver along with senior managers Bruce Pylant, Dabsey Maxwell and JEP Buchanan.