By Michelle Jarboe
Greensboro News & Record Staff Writer

GREENSBORO — Two veteran Triad bankers are moving forward with a plan to build the area's only bank focused solely on small and midsize business.

Premier Commercial Bank could open late this year if its executives can pull together $16.8 million in startup money and gain regulatory approval. Stock in the proposed bank, based in Greensboro, became available this week.

"We are not going to sell insurance," said Frank Gavigan, the proposed bank's president and chief executive officer. "We are not going to be a mortgage broker. We are not going to be giving out stock-picking advice. We are just going to focus on helping small to medium-sized businesses."

Business banks have thrived elsewhere in the state — Paragon Commercial Bank in Raleigh and Charlotte's First Trust Bank, to name a few.

"That business model has just been a bang-up success in the past few years in the right markets," said Tony Plath, associate professor of finance at UNC-Charlotte.

And the Triad — as an urban area with diversity in small business — fits the bill. "It's not as big and as deep a market as Raleigh and Charlotte, but it's certainly big enough for a business-only bank," Plath said.

But, he said, vying for customers against established financial institutions, including big-name banks with a lot of cash and a wide range of services, can be challenging if the local startup doesn't have the strongest possible lending officers and board members.

"More than anything else, you've got to have the right people in place to make the model work," Plath said.

Gavigan, who has logged 25 years in commercial banking, and Premier Vice President and Chief Financial Officer Ed Swing believe they've assembled just that. The board, announced this week, includes members of the Triad's financial, medical, real-estate, retail and development communities.

Organizing the bank will cost about $1 million, but Gavigan and Swing aim to raise up to $22.3 million through stock sales. If they collect their minimum requirement of  $16.8 million, the bank will be able to make loans of up to $2.5 million to individual businesses.

Premier will focus on businesses with annual sales capped about $30 million and also will provide limited banking services for employees of bank customers.

The bank could employ 14-16 people upon opening at 706 Green Valley Road and will add workers and move to a long-term headquarters at 701 Green Valley Road within a few months.

Gavigan and Swing hope to open additional offices in High Point and Winston-Salem.

Contact Michelle Jarboe at 373-7076 or mjarboe@news-record.com