A New Model for Banking Success

(CBS)  You don't often hear of a bank executive deliver good news to shareholders these days - but Broward Bank of Commerce is not your typical bank, reports CBS News correspondent Kelly Cobiella.

The bank only has one branch. There are no ATMs or tellers. But what really sets this bank apart is that it's new - open for business since January.

"Do you lend?" Cobiella asked.

"Absolutely," said Keith Costello. "We have to. We don't' make money if we don't lend."

Twenty-five banks, big and small, failed last year - 94 so far this year, and more than 300 are on the government's list of troubled banks. Still, some experts believe that it's not a bad time to start a bank.

For one thing, there's less competition, and then there are lessons learned.

"It's like when the tide is low you see all the stones and you avoid them," said Kenneth Thomas, a banking expert. "So banks starting up now won't have the problems of existing banks because they will avoid the biggest problems, namely problem loans."

It's not just a new bank, it's a new model for banking. Using technology like this remote check scanning machine to keep operating costs low, the customer can deposit her own checks online without ever visiting the bank.

Paint store owner John Daly is sold, he's moving all of his accounts to Broward Bank of Commerce, and invested $60,000 of his own money.

"I believe the local community can thrive around a bank like Broward Bank of Commerce just like they've thrived around us," Daly said.

"You think your money is safe with them?" Cobiella asked.

"I think so, I hope so," Daly said laughing nervously.

He won't know for sure until 2011, when Broward Bank of Commerce hopes to be able to tell its 99 shareholders that they've made their first profit.

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Well I am so glad the shareholders are happy because people who own stocks are the most important thing to me and not everyone else in America who is getting the shaft from banks.
We are in a recession (almost depression) and in my city there are currently 20 new bank buildings being built right now with more on the way.
But of course the banks are not making excessive profits or ripping people off, no.
The banks want to do away with cash and put everything on computers and cards and if they do, they can REALLY hold us hostage and then they will do us just like the oil companies do.
I like the story this month about the bank that was charging a soldier in Iraq 45.00 every time he went over his debit card balance by a penny or more and never was his overdraft more than a dollar. In two months they charged him with $1,500 in fees until the parents told the story and the bank removed the fees and said "ooops, we're sorry".
I am so glad banks are making money I can't stand it.