For the first time in 17 years, a newly chartered Kentucky bank has officially opened its doors, and it’s in the middle of Owensboro.
Cornerstone Community Bank has received its charter from the Kentucky Department of Financial Institutions and its certificate of deposit insurance from the Federal Deposit Insurance Corporation, both effective June 8, clearing the final regulatory hurdles for Owensboro’s newest locally owned financial institution.
The bank opens with approximately $25 million in capital raised from about 200 local shareholders, reflecting strong community support for what is the first de novo bank charter issued in Kentucky since 2009 and the first new community bank founded in Owensboro since 1997.
The charter and FDIC insurance approvals officially allow Cornerstone to begin accepting deposits and conducting banking operations.
Located at 1819 Frederica St., the bank officially opened on Monday with a soft opening before gradually expanding services over the coming weeks.
“We officially opened as Cornerstone Community Bank on June 8,” said Kyle Aud, the bank’s president and CEO. “We’ll start with a soft opening to make sure everything is working the way it’s supposed to, then spend the following week opening accounts for our 200-plus shareholders before opening to the general public the week of June 22.”
Aud said the bank will still welcome customers immediately.
“We won’t turn away any potential customers if they want to bank with us,” he said.
The locally owned institution continues to accept additional investors as it works toward a goal of approaching $30 million in capital.
Jon Lawson, chairman of the board, said organizers began discussing the project in December 2024 and have spent the last year and a half working through the process of launching a new community bank.
“It feels great,” Lawson said of the opening. “We started this back in December of ’24, and it’s gone really smooth ever since. I’ve been involved in some bank charters before, and this one went very smoothly.”
Cornerstone is the first de novo bank charter issued in Kentucky since 2009. Lawson said the scarcity of new bank charters can largely be traced to changes implemented after the 2008 financial crisis.
He said minimum capital requirements for new banks increased dramatically following the recession, creating a significant barrier for new institutions.
“No new bank could be opened unless it had $20 million in capital,” Lawson said. “That’s not a small number.”
Lawson said the bank’s local ownership and leadership set it apart from many financial institutions.
“Our board is composed of local people with local interest in the community,” Lawson said. “They have a strong desire for success, not only for the bank itself, but also for the community.”
Aud said several factors convinced organizers that the time was right to launch a new community bank.
“There’s currently only one local community bank in Owensboro and Daviess County that was founded here, and of all the banks in our market, only one has less than a billion in assets,” he said. “While there has been some consolidation among community banks locally, the bigger shift has been larger banks pulling back from supporting our community through small business lending, supporting local nonprofits, and volunteering their time.”
He said Cornerstone’s leadership team wants to return to the traditional role community banks have played in local communities.
“Cornerstone Community Bank is made up of community bankers who want to get back to the basics, and that includes being the kind of community leader that shows up for our neighbors,” Aud said.
A key focus for the bank will be local decision-making.
“The gap we want to fill is in local decision-making,” Aud said. “Between our board and employees, we have the knowledge to make the right calls for our customers, employees, and shareholders because we’re from here and we know them.”
Market President Andrew Howard said the bank’s mission extends beyond simply operating a local branch.
“Opening our doors marks an exciting milestone and a deep commitment to our community,” Howard said. “We are energized by the opportunity ahead to serve with intention and purpose, building meaningful relationships and providing a lasting impact in the lives of our customers and our community.”
Howard said local banking is about more than geography.
“Being local is more than having a presence; it’s who we are and how we serve,” he said. “It means showing up.”
Aud emphasized that the bank will not rely solely on personal relationships when evaluating loans, but said local knowledge remains an important part of the process.
“Character is a significant factor in every loan decision, and it’s one our organization is positioned to assess well,” he said.
Cornerstone’s first-year priorities extend beyond balance sheets and loan growth. Aud said organizers want to create a workplace culture that attracts talented employees and encourages community involvement.
“If you forced us to choose our top priority for year one, it would be to build a brand rooted in the belief that true leadership creates happy employees, then happy employees naturally want to help their customers and give back to their community,” Aud said.
The bank also plans to maintain a strong community presence through volunteerism and charitable support.
“Strong community banks play a significant role in the health and well-being of the communities they serve, and we plan to do exactly that,” Aud said. “Our employees and board members will be out there volunteering their time and showing up for our community.”
Organizers envision future growth beyond the bank’s initial location. Aud said success over the next three to five years would include opening additional branches, growing the employee base, and becoming recognized as one of the state’s top workplaces.
“Success for Cornerstone Community Bank in three to five years would be a bank with multiple locations in the area, a growing employee base, and one that ranks high in the Best Places to Work in Kentucky voting,” Aud said. “If we’ve been successful in hiring the best talent and we’re able to keep them happy and having fun, then satisfied customers and strong financial performance should follow.”
The bank’s ownership structure is another point of pride for organizers. Cornerstone is organized as a C corporation, allowing broad community ownership while preventing any one individual, family, or investor group from controlling the institution.
“We all agreed early on that to be a true community bank, the whole community needed an opportunity to invest,” Aud said. “We didn’t want to be perceived as owned by any one person, family, or group.”
Aud said opening a new bank has been a challenging process, particularly given increased capital requirements and regulations implemented since the Great Recession.
“It takes a special set of circumstances for a de novo to happen,” he said. “We’ve been fortunate because we had talented bankers willing to take the risk, organizers who believed in those bankers, and a community willing to show their support by investing alongside them.”
Cornerstone Community Bank’s main office is located at 1819 Frederica St. in Owensboro. Lobby hours are 8:30 a.m. to 4:30 p.m. Monday through Friday. Drive-thru hours are 8:30 a.m. to 4:30 p.m. Monday through Thursday, 8:30 a.m. to 6 p.m. Friday, and 9 a.m. to noon Saturday. The bank can be reached at 270-215-2685.
