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G & L Bank (Proposed)

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



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