New Bank's Headquarters is a Double-Wide Trailer

Aug. 31, 2010— -- The Lakeside Bank has barely been in business a month and already it's making headlines. It is the only new start-up bank to open in America this year. It's not housed in some towering beacon in the sky, but a secondhand, standard double-wide trailer in Lake Charles, Louisiana.

As first reported by the New York Times, the long road traveled took more than two years, with the initial idea coming from local real estate developer Andrew Vanchiere, who was fed up with his bank. He rounded up a group of local businessmen who set out on a capital hunt. In less than six months they were able to raise $12 million.

"We were able to raise money primarily from within our zip code, from business people, as well as individuals. We don't want big investors. No one investor will own more than 15 percent," says Hartie Spence, president and CEO.

That capital was an important factor in the FDIC decision to approve Lakeside. In addition, says Spence, the new bank had a conservative business plan, a solid management team and board of directors. The bank was also helped by the company it keeps. Other banks in the region are mostly healthy.

So far this year, 118 banks have failed and the FDIC has stepped up oversight of new banks. So what gives Lakeside Bank the moxie to move forward in this environment?

"Research shows that 25 percent of the American public wants to do business with a locally owned and managed bank. That's a huge market," says Spence.Lakeside is looking to be the folksy, hometown favorite. "We want to be a plain vanilla, community bank," says Spence. "If you want a loan you want to deal with people you know. We're going to be very close, touchable," says the former offensive tackle for Louisiana State University, who has a law degree, but decided to pursue banking out of college.

"We want to run banks the way they used to be. We will not screen calls. You will get voicemail if you ask for it. We're about humans to humans. I have my home phone number on business cards," says the 70-year-old, balding, good-humored Spence, who came out of retirement to get back into the banking action, where he had been for more than 40 years.