SouthPoint Bank was launched in October 2005 by former SouthTrust Corporation executives. Steve Smith, currently Chairman, President and Chief Executive Officer got the idea of opening a bank when the former SouthTrust Bank was purchased by Charlotte-based Wachovia Corporation in June of 2004. Smith left Wachovia at the end of 2004 with 22 years of service. He recruited other interested former SouthTrust co-workers, shared his ideas about opening a bank and in March 2004 submitted an application to state and federal regulators to open a Birmingham-based state chartered institution called SouthPoint Bank.
Smith planned for the bank to open in the fall of 2005 with 6,000 square feet at The Colonnade, an area South of Birmingham. He began selling stock to a diverse shareholder group within the community to raise $10.5 million to $20 million in capital. Smith's plan was to develop a community bank that is locally owned and operated so he limited shareholder investments to a maximum of $500,000. Initially, Smith injected $700,000 of his own money into the venture with 70,000 shares @ $10 per share. He now owns approximately 200,000 shares.
When the bank opened in 2005, nine of the originally 14 employees were ex-SouthTrust employees. SouthPoint's target market is medium sized privately owned businesses as well as professionals and owner-occupied real estate developments for lending and deposit relationships. SouthPoint is also highly successful at Home Mortgage lending for individuals and offers great interest rates on checking accounts for individuals.
The first SouthPoint Bank branch was opened in Trussville in December of 2006, Gardendale branch opened in August 2007 and Wilsonville branch opened in September 2014. In late 2007 SouthPoint started the Home Mortgage Lending Division which currently has seven offices in Vestavia, Hoover, Birmingham, Spanish Fort, Gadsden, Decatur and Huntsville. SouthPoint is currently looking for a new headquarters location and has plans to expand geographically as opportunities present themselves.
In 2005, the initial board of directors consisted of nine professionals including a doctor, retired banker, retired CPA, attorney and other businessmen with a variety of experience in many diverse segments of the community. There are currently six directors on the board.
The bank currently has a total of 36 employees of which 20 are ex-SouthTrust employees with an average of 16+ years of experience with some employees with over 33 years of individual experience. The Home Mortgage Lending Division currently has 43 employees all of which have past mortgage experience.
The bank survived the economic downturn in the late 2000's without the use of government TARP funds or any other funds and has performed profitably for the past four years. The current outlook for the bank is to continue to grow organically, with a new three year strategic plan guiding the bank through year-end 2017. This plan will bring total assets to approximately $265 million along with continued sustained profitability.