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Insurors Bank of Tennessee

FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: Insurors Bank of Tennessee
Nashville, Tennessee (Proposed)
Application for Federal Deposit Insurance (Bank Insurance Fund)

ORDER

The undersigned, acting on behalf of the Board of Directors pursuant to delegated authority, has fully considered all available facts and information relevant to the factors of Section 6 of the Federal Deposit Insurance Act relating to the application for federal deposit insurance for Insurors Bank of Tennessee (the "Bank"), a proposed new state chartered bank with membership in the Federal Reserve System to be located at 2500 Hillsboro Road, Suite 200, Nashville, Davidson County, Tennessee, 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 by 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 $5,900,000 is provided;

2. That a tangible capital to total assets ratio of not less than 8% be maintained throughout 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 approval null and void unless such proposal is approved by the Regional Director prior to opening of the Bank;

4. That federal deposit insurance shall not become effective unless and until the applicant has been established as a state chartered bank with membership in the Federal Reserve System, that it has authority to conduct a banking business, and that its establishment and operation as a bank have been fully approved by the State of Tennessee;

5. That the Board of Governors of the Federal Reserve System has approved the applications for any and all Bank Holding Companies to acquire voting stock control of the proposed bank prior to the opening of the Bank;

6. That the Bank will not accept brokered deposits referred by independent insurance agents who have not provided the Federal Deposit Insurance Corporation with written notice that they are acting as a deposit broker in accordance with section 337.6(e) of Federal Deposit Insurance Corporation Rules and Regulations;

7. That the Bank shall operate within the parameters of the submitted business plan. Furthermore, during the first three years of operations, the Bank shall notify the Regional Director of any proposed major deviation or material change from the submitted plan 60 days before consummation of the change.

8. The applicant will have adequate fidelity coverage;

9. That until the conditional approval 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;

10. 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.

Dated at Washington, D.C. this day of 2000.

By: ________________________
John M. Lane
Associate Director
Division of Supervision


FEDERAL DEPOSIT INSURANCE CORPORATION

IN RE: Insurors Bank of Tennessee
Nashville, Davidson County, Tennessee (Proposed)
Application for Federal Deposit Insurance (Bank 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 has been filed on behalf of Insurors Bank of Tennessee, Nashville, Tennessee ("Insurors" or "Bank"), a proposed new state chartered bank and a Federal Reserve System member with membership in the Bank Insurance Fund ("BIF".) The Bank is to open with a single office to be located at 2500 Hillsboro Road, Suite 200, Nashville, Davidson County, Tennessee.

Insurors is being organized as state member bank. Cumberland Bancorp, Inc. , and InsCorp, Inc. both domiciled in Nashville, Tennessee, are to each own fifty percent of Insurors. The Bank is to be a special purpose or "niche" bank in that it will be a commercial bank servicing the needs of independent insurance agents in the State of Tennessee, their employees, and customers. The Bank will have a geographically central location in Tennessee with headquarters in the city of Nashville, the site of the state's capitol. The Bank's primary trade area is initially defined as Davidson County, the state's second most populated county as of the 1996 census. However, as a special purpose institution, Insurors will market itself to, and solicit business from, a specific group of customers, namely, independent insurance agents, their employees and customers in the State of Tennessee.

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 to be satisfactory. The Bank will provide an alternative banking source to its targeted market with no adverse effect on the competitive environment. No undue risk to the to the insurance fund is apparent. No formal objections to this application have been filed with the Federal Deposit Insurance Corporation. Corporate powers to be exercised are consistent with the purpose of the Federal Deposit Insurance Act.

Accordingly, based upon a careful 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



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