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Unified Banking Company (Proposed)

FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: Unified Banking Company (Proposed)
Lexington, Fayette County, Kentucky
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 Unified Banking Company (the bank), a proposed new federal savings bank to be located at 2353 Alexandria Drive, Lexington, Fayette County, Kentucky.

The bank's sole shareholder will be Unified Financial Services, Inc. (UFS). UFS is a diversified financial services company organized in 1989 to provide mutual funds, brokerage and security services, investment advisory and asset management services, tax-free reorganizations and consolidations of financial services companies, non-bank custodial services, trust and retirement services, internal and external proprietary products and systems development for financial services institutions, asset allocation services, investment advisory services, financial planning services, and Internet technology and services.

The bank's primary market will be the Lexington, Kentucky market area, with a significant source of deposit funds coming from existing UFS individual account relationships and affiliated companies. Its business plan is to provide traditional deposit and loan products through traditional lobby services located in the sole office in Lexington, Kentucky. For the first several years of operation, the proposed bank will meet the profile of a traditional thrift bank.

For the purposes of this proposal, the investment in fixed assets is reasonable, capital is adequate, future earnings prospects are favorable, and management is considered satisfactory. Corporate powers to be exercised are consistent with the purpose of the Federal Deposit Insurance Act. No formal objections to this proposal have been filed and no undue risk to the Savings Association Insurance Fund is apparent.

Accordingly, based upon a careful evaluation of all available facts and information, the Deputy Director, pursuant to delegated authority, has concluded that approval of the application is warranted.

DEPUTY DIRECTOR
DIVISION OF SUPERVISION


FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: Unified Banking Company
Lexington, Fayette County, Kentucky
Application for Federal Deposit Insurance

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 (Savings Association Insurance Fund) for Unified Banking Company, a proposed new federally chartered stock savings bank to be located at 2353 Alexandria Drive, Lexington, Fayette County, Kentucky, and has concluded that the application should be approved.

Accordingly, it is hereby ORDERED, for the reasons set forth in the attached Statement, that the application submitted on behalf of Unified Banking Company for federal deposit insurance (Savings Association Insurance Fund) be and the same hereby is approved subject to the following conditions:

(1) That beginning paid-in capital funds of not less than $7,300,000 be provided;

(2) That a Tier 1 capital to total assets ratio of not less than 8% be maintained for the first three years after deposit insurance is effective;

(3) That any changes in proposed management or proposed ownership (10% or more of stock) of the bank, including new acquisitions of or subscriptions to 10% or more of the bank's stock, will render this commitment null and void unless such proposal is approved by the FDIC prior to opening of the bank;

(4) That prior to opening for business, the bank will assure that its electronic information systems are able to perform correctly all automated processing applications, including interactions and interdependencies with other automated systems, involving dates later than December 31, 1999, consistent with the standards and guidance provided by the Federal Financial Institutions Examination Council.

(5) That Federal deposit insurance shall not become effective unless and until the applicant has been established as a federal savings bank, 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 full disclosure has been made to all proposed directors and stockholders of the facts concerning the interest of any insider (one who is, or stands to be, a director, an officer, or an incorporator of an applicant or shareholder who directly or indirectly controls 10% or more of any class of the applicant's outstanding voting stock, or the associates and interests of any such person) in any transaction being effected or then contemplated, including the identity of the parties to the transaction, and the terms and costs involved;

(7) That Unified Financial Services, Inc., Indianapolis, Indiana, a savings and loan holding company, obtain approval from the Office of Thrift Supervision to acquire voting stock control of the bank prior to its opening;

(8) That until the conditional commitment herein ORDERED becomes effective, the FDIC shall have the right to alter, suspend or withdraw the said commitment should any interim development be deemed to warrant such action;

(9) That if deposit insurance has not become effective within twelve 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 the twelve-month period; and

FEDERAL DEPOSIT INSURANCE CORPORATION

BY: Michael J. Zamorski
Deputy Director



Last Updated 03/24/2011 Legal@fdic.gov