FEDERAL DEPOSIT INSURANCE CORPORATION
IN
RE: G & L Bank (Proposed)
Pensacola, Florida
Application for Federal Deposit Insurance
(Savings Association Insurance Fund)
ORDER
The undersigned, acting under delegated authority, has fully considered all available
facts and information relevant to the factors of Section 6 of the Federal Deposit
Insurance Act and relating to the application for Federal deposit insurance, with
membership in the Savings Association Insurance Fund, for G & L Bank, a proposed new
savings bank to be located at 270 North Palafox Street, Pensacola, Florida,
("Bank") and has concluded that the application should be approved.
Accordingly, it is hereby ORDERED, for the reason set forth in the attached Statement,
that the application submitted on behalf of the Bank for Federal deposit insurance be and
the same hereby is approved subject to the following conditions:
1. That beginning paid-in capital funds of not less than $13,450,000 shall be provided;
2. That prior to opening, the Bank and G&L Holding Group, Inc. ("Company")
must submit background information on and obtain written non-objection of the FDIC's
Atlanta Regional Office ("Regional Director") for all anticipated but not yet
identified board members;
3. That any changes in proposed management or proposed ownership (10 percent or more of
stock), including new acquisitions of or subscriptions to 10 percent or more of the stock,
shall render this approval null and void unless such proposal is approved by the Regional
Director prior to opening of the Bank;
4. That during the first three years of operation the Bank shall maintain not less than an
8 percent Tier I capital ratio;
5. That Federal deposit insurance shall not become effective unless and until the Bank has
been established as a federal savings association, that it has authority to conduct a
banking business, and that its establishment and operation as a bank have been fully
approved by the Office of Thrift Supervision;
6. That the Bank shall operate within the parameters of the submitted business plan. Any
proposed major deviations or material changes from the submitted plan shall receive the
prior written approval of the Regional Director;
7. That until the bank commences business, the FDIC shall have the right to alter,
suspend, or withdraw said approval should any interim development be deemed to warrant
such action;
8. That if Federal deposit insurance has not become effective within 12 months from the
date of this Order, or unless, in the meantime, a request for an extension of time has
been approved by the FDIC, the consent granted shall expire at the end of said 12 month
period.
Dated at Washington, D.C., this 27th day of July, 1999
FEDERAL DEPOSIT INSURANCE CORPORATION
Mark S. Schmidt
Associate Director
Division of Supervision
FEDERAL DEPOSIT INSURANCE CORPORATION
IN RE: G & L Bank (Proposed)
Pensacola, Florida
Application for Federal Deposit Insurance
(Savings Association Insurance Fund)
STATEMENT
Pursuant to the provisions of Section 5 of the Federal Deposit Insurance Act (12 U. S. C.
1815), an application for Federal deposit insurance, with membership in the Savings
Association Insurance Fund, has been filed on behalf of G & L Bank, a proposed new
savings bank to be located at 270 North Palafox Street, Pensacola, Florida
("Bank").
The Bank will market a full line of loan and deposit products to the gay men and lesbian
communities, as well as the general banking community. Although customers will be able to
transact business at the Bank's main office in Pensacola, Florida, it is projected that
the majority of the Bank's customers will be served through its Internet website.
The Bank has designated both a primary and a secondary market area. Because the majority
of the Bank's business will be transacted over the Internet, proposed Bank management has
selected the United States, including the District of Columbia, the territories and
possessions of the United States, and the Commonwealth of Puerto Rico as its primary
market area. The Bank's main office will be located in Pensacola, Escambia County,
Florida. Accordingly, it has designated Pensacola and surrounding communities as its
secondary market area. The secondary market will be used as the Bank's assessment area for determining its compliance with
the Community Reinvestment Act. A review of the applicant's statements and other available
information revealed no inconsistencies with the purpose of the Community Reinvestment
Act.
Initial capitalization is adequate, and acceptable deposit growth and operating profits
are projected within a reasonable time period. The proposed investment in fixed assets is
reasonable, and the factors relating to the general character and fitness of management
and the risk to the deposit insurance fund have been favorably resolved. Accordingly,
based on the evaluation of all available facts and information, the Associate Director,
pursuant to delegated authority, has concluded that approval of the application is
warranted.
ASSOCIATE DIRECTOR
DIVISION OF SUPERVISION
FEDERAL DEPOSIT INSURANCE CORPORATION
