By: Lauren Otis
First Choice Bank, which is seeking a charter to operate as a community bank in Lawrence Township, appears to be well on the way to achieving that goal.
First Choice has closed its subscription for investors, having raised close to $12 million from almost 500 shareholders, and appears to be on the path to receiving its state charter following an Oct. 24 hearing before the New Jersey Department of Banking and Insurance, said Randy Hanks, First Choice’s president and chief executive officer.
The Oct. 24 hearing went well, with no opposition being voiced to First Choice receiving a charter, said Mr. Hanks, who left Wachovia National Bank to join the startup community bank.
"Hopefully we will receive conditional approval in early December," he said. Conditional approval gives the bank the go-ahead while spelling out the remaining things it needs to do to receive its final charter approval, such as procure FDIC insurance, according to Mr. Hanks.
The $12 million raised from investors is nearly double the minimum capitalization requirement of $6 million for the new community bank, Mr. Hanks said. "We feel pretty good about it," he said of the amount raised. The subscription was closed before reaching 500 investors because 500 "is a little bit of a magic number" in that Securities and Exchange Commission filing requirements come into play under the Sarbanes-Oxley Act for banks with 500 or more shareholders, he said. "There becomes quite a burden in terms of regulatory compliance," Mr. Hanks said.
Right now, "we are in the midst of renovation work," on First Choice’s future location on Whitehead Road in Lawrence, Mr. Hanks said. "We hope to have a building ready for us to inhabit in January," he added.
In addition, First Choice has hired Nicholas A. Frungillo Jr. to be its executive vice president and chief financial officer. Mr. Frungillo, a certified public accountant, was most recently executive vice president, CFO and chief operating officer for The Town Bank in Westfield. "We are real excited about having him on board," Mr. Hanks said.
No new community bank has been chartered in Mercer County since 1999, when Hopewell Valley Community Bank received its charter. The Bank of Princeton is currently seeking a charter to commence operations as a community bank located in Princeton.
More information on First Choice Bank is available at www.firstchoice-bank.com.

