Independent Bank of Austin Opens Georgetown Branch; Veteran Bankers Set Fast Growth Pattern

Lakeway, Texas-based Independent Bank of Austin, which has set a blistering growth pace since its June 6 opening with highly attractive Platinum Account, savings and CD rates, has now begun a limited service branch between Georgetown and Sun City Texas . . . announced plans for a new permanent headquarters location and its board of directors...and disclosed details of its fast-track charter process, which may become a template for newly chartered institutions. Jack and Denny Buchanan -- no relation -- are Chairman and CEO, respectively of the chartered and FDIC-insured State Savings Bank.

Georgetown, TX (PRWEB) October 5, 2005 -- Independent Bank of Austin SSB – a locally owned state-chartered savings bank (SSB) which began operating three months ago in Lakeway, TX near Austin – has opened a limited service branch (at 3613 Williams Dr., Ste. 201 in the Village Lake Office Condominiums) between Georgetown and the burgeoning Sun City retirement development.

We do not believe Williamson County is 'underbanked,'" said Jack W. Buchanan of Georgetown, principal organizer and Chairman of the Board of Independent Bank, particularly with the recent announcement that Sun City will build another 2,500 homes. We are, however, convinced that commercial businesses and area residents deserve more services, rapid lending responses and the best returns on their deposits. It is one reason we have embraced the tagline, 'The People's Bank'.

said Buchanan, who also owns Buchanan Financial Services Ltd., a private lending and investment firm. Georgetown branch activity will be a significant contributor to our anticipated success.

To attract deposits that will fund our loan portfolio – commercial development, residential construction and mortgages – we offer a highly competitive Platinum Account paying 3.40 percent (APY)," said the 35-year banking industry veteran and founder of three other banks. These accounts, available to individuals and corporations, require deposits of $50,000 or more, with unlimited check writing for individuals.

We can pay the highest rates in the area on money market accounts, savings, checking and certificates of deposit because of our cost structure, low overhead and decision to forego ATM and cash operations at the branch at this time," Buchanan emphasized.

We believe Georgetown residents and the retirees in Sun City will find our rates both competitive and highly attractive," he said. (For current rates, see www.ibankaustin.com or call 512-819-9300.)

Key staff members at the new branch, all former employees of area banks and businesses, are Terri Dalton, Vice President/Branch Manager, Dana Gurley, Personal Banker, and Priscilla Jones, Administrative Assistant to the Chairman. The three women have more than 36 years of combined banking experience.

Independent Bank, which began June 6 with $7.5 million in capitalization, had $33 million in deposits and loans valued at $32.6 million at close of business Sept. 23, 2005. The institution began offering online banking capabilities for its customers on Sept. 30.

Our original objective was to generate $100 million in assets for Independent Bank within five to 10 years. Based on the area economy and growth indicators, our educated estimate is that Independent Bank will be at $90 million within three years and at $120 million within five years," said Buchanan, who also owns Buchanan Financial Services Ltd., a private lending and investment firm. Georgetown branch activity will be a significant contributor to our anticipated success."

Unusual Charter Process…Future Headquarters

Denny Buchanan, President/CEO of Independent Bank, who is no kin to Jack Buchanan, said:

During the charter process, our bank worked through an arrangement with another Central Texas Bank and was able to warehouse about $30 million in loans over a seven-month time frame. These loans were available for us to purchase once we opened, which gave us earning assets from the beginning.

Also, the income we received during the interim period while starting the bank offset many of our pre-opening and organizational expenses," said the former SVP-Lending at Village Bank and Hill Country Bank, both in Lakeway. This allowed us to reflect a very small loss in our first month of operation, compared to what other start-up banks experience. We believe that this arrangement sets a precedent and forms a model that other start-up institutions will follow.

The FDIC had told us that we would blow through our projections, and they appear to be right. To be on the safe side, we took its recommendation and raised additional capital to accommodate future growth expectations," he explained

Additionally, Independent Bank management is negotiating for a permanent headquarters location in the Lakeway area, with tentative plans to begin construction by fall 2006 on a 3,500-square-foot facility near the Lakeway-Bee Cave area of busy Ranch Road 620.

Other board members in addition to the Chairman and CEO are:

• Doug Baker, Chief Financial Officer of Seaport Bank in Seadrift, TX. The former Georgetown resident was SVP, Cashier, CFO, COO and a Director of Union State Bank in Florence TX.

• Nathan Douglas, D.V.M., of Georgetown, owner of Cedar Park Animal Clinic.

• Tom Locke of Georgetown, President of the Texas Methodist Foundation in Austin, a $250+ million institution that lends money to churches.

• David Peak of Georgetown, a marketing manager for Dell Computer for the past three years.

NOTE TO EDITORS: Photos of the executives and their staffs in Lakeway and Georgetown can be accessed at this URL: www.ibankaustin.com/aboutus.html

FOR MORE INFORMATION OR INTERVIEWS:
Jack Buchanan, Chairman, Independent Bank of Austin SSB, Georgetown, TX, 512-819-9300, fax 512-819-9330

Denny Buchanan, President/CEO, Independent Bank of Austin SSB, Lakeway, TX, 512-261-3355, fax 512-261-3356

Preston F. Kirk, APR, Kirk Public Relations, Austin, TX, 830-693-4447

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