Ryan returning First NBC name to New Orleans

Veteran local banker Ashton Ryan Jr. plans to open a new local bank that would carry a venerable local name.

Ryan has applied to charter First NBC Bank in New Orleans, American Banker Online reported today. He has lined up $40 million in start-up capital from investors who include National Football League big-names and New Orleans natives Peyton and Eli Manning.

Organizers of the bank, which was in the planning stage months before hurricanes Katrina and Rita struck, filed their application with state and federal banking regulators on Nov. 22. American Banker says that the start-up investment makes First NBC Bank “by far Louisiana's largest start-up bank” and the first chartered in New Orleans in more than 14 years.

First NBC Bank would specialize in construction, commercial, residential and bridge lending. Ryan, who resigned as president and CEO of First Bank and Trust in June, will be the start-up chairman, president and CEO of First NBC Bank.

Prior to joining First Bank and Trust, Ryan had spent many years in the ranks of top management building First National Bank of Commerce in New Orleans, which was commonly known as First NBC. When Bank One bought First NBC in the late 1990s, Ryan became a top local executive with Bank One.

"There's a huge opportunity to lend money down here," he told American Banker, referring to the new enterprise. The article noted that while other local banks have their hands full with potential hurricane-related problems in their existing loan portfolios, the new First NBC will have “a clean balance sheet and fresh capital that will enable it to step in to the market take full advantage of the increased demand for credit.”

One of the organizers, David Anderson, who is to be First NBC's trust officer, told American Banker: "We're a new bank that's coming into the market with no bad debt and fresh capital, which gives us a strategic advantage."

Anderson said planning for the bank began in April and recent consolidation — including the mergers of Bank One Corp. with JPMorgan Chase & Co. and Hibernia Corp. with Capital One Financial Corp. — created an opening in the New Orleans market for a community bank that could serve small businesses, which generally demand more personal service.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.