Defying Economy, Piedmont Bank of Georgia Raises Capital in Record Fashion.

Business Editors

ATLANTA--(BUSINESS WIRE)--Oct. 12, 2001

With $9.5 million from investors,

startup bank exceeds regulatory requirements

Despite a flat economy and uncertainty in the financial and stock markets, Atlanta's newest financial institution, Piedmont Bank of Georgia, was able to raise $9.5 million in less than six weeks to start business with its stock sold in what is believed to be record time.

Piedmont Bank received all required regulatory approvals on Oct. 5 and is planning to open its doors for business mid-month.

"We were overwhelmed by the tremendous interest we received from so many different parties," said Piedmont Bank President and CEO Brian D. Schmitt, a banking industry veteran. "We are thrilled with the fact that so many people, in a down economy, would jump at the chance to be part of our latest venture. In my mind, it's a great testament to the banking philosophy of the founders of Piedmont Bank and to our proven track record."

"The pace and amount of money they raised, particularly in today's capital environment, is quite remarkable," said Jon Burke, Principal of Brown-Burke Capital, a corporate finance advisory firm specializing in community banks.

Echoing that sentiment is Walt Moeling, Head of the Financial Institutions Group at Powell Goldstein Frazier & Murphy, LLP, one of Atlanta's top five law firms: "Community banks' stock has sold slowly in the past few years, but with markets in turmoil, we're seeing investors more inclined to invest in something they can touch and feel. That sentiment, combined with the fact that [Piedmont Bank has] a really strong, proven management team, surely came into play as they raised this money so rapidly."

Piedmont Bank will open in mid-October with a single location at the intersection of Piedmont Road and the Buckhead Loop. According to Tony Mannino, Piedmont's Chief Financial Officer, "The bank will cater to small middle market businesses that are looking for more personalized service." For instance, daily personal couriers will be dispatched to pick up customers' deposits, and flexible, personalized loan structures will be some of the services that will differentiate Piedmont Bank from larger, more traditional banks.

"It's really a return to the comfortable, friendly old-style of personal banking with innovative service supported by modern technology and highly experienced management," added Schmitt. "We are clearly focused on building relationships with our customers. Our motto is simply, `What would it take to get your banking business?' We think that is a refreshing change in today's banking climate."