Post edited 8:00 pm – June 19, 2010 by arkmundi

Nuzzo, 58, and some 40 founding partners — an unusually large number — and more than 250 additional investors raised $18.3 million over the past two years in support of their plan. They also managed to convince both a national bank regulator, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corp., which both regulates and insures banks, along with local city officials, that opening their bank — and their timing — was a great idea.

“I’m proud,” Nuzzo said, of adding 17 new jobs with benefits to the local economy, even as Massachusetts’ unemployment rate closes in on 10 percent. He’s served as CEO of two established banks in the past: Chemical Bank Delaware and Fidelity Trust Company in Utah.

Still, with more than 100 U.S. banks forced to close since the recession began in 2007, and approximately 200 banks already in Massachusetts, a skeptic would be forgiven for asking how First Commons will stand out and succeed. Nuzzo’s answer: Tough times are an advantage, because they’ve forced larger banks that took losses on risky mortgage-related investments to cut staff, raise fees and lend less.

“I think the economy is looking for banks to make loans,” adds Peter Mawn, owner of Oakmont Partners, an investment advisory firm in Boston and First Commons board member. The $18.3 million in startup which capital founders raised is nearly double the minimum required to start a new bank, meaning First Commons has several million dollars practically burning a hole in its pocket, ready to leverage toward new loans.

Local connections are prominently displayed at the bank. Pictures of founders and supporters…. The relatively large number of initial investors are all part of Nuzzo’s plan to grow First Commons Bank from the ground up. He hopes they’ll become a natural client and referral base, because they both know and believe in the bank, and have an interest in its success.

“If you have the right concept, profit for investors will grow,” he said — no matter the state of the economy when you start.

read full article at http://www.wickedlocal.com/