Revival of Community Banks: A Closer Look at De Novo Activity in Florida
Interest in the formation of new banks, also known as de novo activity, appears to be experiencing a resurgence in the banking industry. In particular, Florida seems to be the focal point of this revival as it witnesses a spike in applications and planned bank openings. This trend signifies the public’s confidence in the Florida economy’s long-term prospects and the potential for community banks to play a pivotal role in supporting this growth.
The Federal Deposit Insurance Corp. (FDIC) reported an uptick in deposit insurance applications, receiving six such requests in March alone. This is a notable increase from the total of 10 applications received in the entire year of 2025. This data supports the assertion that de novo activity is on the rise.
The Journey of Portrait Bank: Capital Success and Future Prospects
One of the imminent new banks on the horizon is the Portrait Bank, based in Winter Park, Florida. Portrait Bank’s CEO, Erik Weiner, has been instrumental in steering the bank towards its opening, which is expected to be in June. The bank has already secured conditional approvals from the State of Florida and the FDIC.
As a regulatory requirement, Portrait was expected to raise around $28 million in capital. However, it outperformed this target by accumulating subscriptions totaling $42 million from 248 investors. This achievement not only validates Weiner’s optimistic prediction last year but also underscores the investors’ faith in Florida’s economic growth and the role of community banks in fostering it.
Supporting Florida’s Economic Growth and Community Development
Weiner, who has extensive experience working with prominent banks such as Fifth Third Bancorp, BankUnited, and City National Bank of Florida, believes that the success of Portrait Bank embodies the investors’ belief in Florida’s sustainable economic growth. He said, “Since banks are a reflection of the community, people feel very comfortable putting their money into a new bank.”
It’s worth noting that Portrait Bank is not the only new bank making waves in Florida. Another de novo group, Echelon Bank in Tampa Bay, managed to raise $23 million to set up its planned opening in May. Equally impressive is the approval of Eagle, Idaho-based VALT bank’s charter application by the Office of the Comptroller of the Currency in March.
The Resurgence of De Novo Banks and Its Implication
While the number of new banks opening in 2026 remains modest with only three since the start of the year, the wave of interest in new bank formation is unmistakable. The FDIC reported a sharp increase in deposit insurance applications in March, indicating a growing interest in de novo banking.
Banking consultant Paul Schaus, managing partner at CCG Catalyst, asserts that this trend is likely to continue. He believes that while we might not witness the de novo activity levels of the 1990s, the recent surge in applications suggests an impending uptick in new banks.
Experts argue that a healthy de novo banking market is crucial to the broader financial system’s stability. According to Schaus, increasing the number of small banks helps to mitigate risk in the financial system. As banks grow larger, their customer relationships become more technology-based, which may not always serve the interests of local communities. Conversely, community banks, with their deep understanding of local markets, are well positioned to support promising but unproven concepts and companies.
Weiner, echoing this sentiment, asserts that Portrait Bank is committed to a traditional community banking strategy. He said, “We’re going to be a reflection of the community…We’re not going to do specific verticals out of the gate. We’re going to be here to support the growth that is taking place in Central Florida.”
Source: Here
