The Buzz of Northwest Georgia:
-Months of changes continuing at Heritage First Bank.
-Start looking for local, regional 'business angels' by fall.
-Three-Dot Buzz: Changes in the 'air;' City Market preview?
Peaks & Valleys: The highs and lows of Northwest Georgia:
-Peak to Cartersville High's decade of dominance.
-Peak to the chamber's highly successful membership drive.
-Valley to the state budget cutters.
-Valley to cloistered newspaper executives.
Mills Fitzner's photos from Saturday night's Rome River Jam> Click
-What's ahead in downtown Rome: First Friday concert, 7 p.m., featuring The Beatless. Bridgepoint Plaza, free.
Weather
-Monday: Mostly sunny, high of 92.
-Monday night: Clear with a low of 61.
-Tuesday: Sunny skies, high of 90.
-Extended forecast> Weather Service
Norman Arey's Sports Roundtable/brought to you by Riverside Toyota
-Make no mistake: College football is the real bread winner
-Rome wins third straight vs. Bowling Green, 5-3.
-Up next: 8:05 p.m. Monday in Bowling Green.
-Tuesday-Friday: Home vs. Augusta; Glavine due to pitch Tuesday.
-Latest Mills Fitzner game photos> Gallery
Months of changes continuing at Heritage First Bank
Thursday morning's call from a veteran Rome businessman was interesting. He'd tracked almost every change at Heritage First Bank dating back to last fall, and he was dead-on again.
"Reed's truck is back at Heritage First," he said, referring to Reed Biggers, one of three Heritage First Bank executives to leave suddenly last fall following questions about hirings and operations. Also gone were Michael Baker and Bryan Kelly.
Their exits marked the first public phase of nine months of changes for the almost seven-year-old community bank that has four Rome offices: Branches at Turner McCall, Shorter Avenue and Martha Berry Highway as well as an operations center off First Avenue in downtown Rome.
By early fall, Biggers and Baker were said to be forming yet another community bank in Rome/Floyd County, perhaps focused mostly on businesses. Nicknamed the "Breakaway Bank" by the financial community, the only formal name we found on paper was CFB Organizing Group LLC (Click)
Breakaway Heritage board members and a few members from other local bank boards were said to be amassing at least $12 million to get the new bank launched, pending regulator approval. The economic "climate" wasn't ideal, according to some observers, while others said a new bank would have a huge advantage: it wouldn't be saddled with the toxic loans crippling others in recent months.
Those plans changed as the breakaway group and Heritage began to talk. In recent weeks, Dr. Ken Davis, president and CEO of Harbin Clinic, was named chair of Heritage's parent company, Heritage First Bancshares. Longtime chairman Barry Hurley resigned.
Next came veteran banker Greg Wilkes out of retirement to serve as chief executive officer of the bank and the holding company.
Perhaps the most significant move was a May 15 application to the Federal Reserve Board by 13 investors to buy a third of Heritage First Bancshares. The applicants include: Jessie Buffinton, Helmut Cawthon, Ken Davis, Andrew Heaner, Clinton Hubbard, Stephen Klasson, Kimberly Mauer, Laura and Matthew Mumber, Delos Yancey III, John Xanthos, Andrew Heaner of Atlanta and Wayne Vick. (Source: Federal Reserve Board)
In recent days, Hometown Headlines reported that the Office of Thrift Supervision had issued a 24-page Supervisory Agreement regarding past operations at Heritage First. (Bank Report) The agreement contains stipulations and guidelines for current and future bank operations.
Also, Heritage First just concluded a capital campaign that was expected to raise $7 million to $8 million designed to both cover existing debt and give the bank additional resources for future needs. A majority of that money likely came from the 13 investors.
Even before Wilkes' appointment was announced, Biggers and Baker were said to be heading back to Heritage thanks to the overall shakeup. The Rome News posted a press release Friday confirming both had rejoined the bank in executive posts.
With new capital, the regulators' operational plan and now a boat load of executives, a lot more eyes will be watching the bank's parking lots to see what's next.
Angels among us: Regional investors group should be here by fall
By Natalie Simms
Northwest Georgia should see the first seeds planted by the still-developing regional angel investment group come fall.
Since November, "angels" have come together to begin developing a network to foster local business development. Organizers hope their operating and legal framework will be completed by late July or early August, followed by the first investments in local business ventures.
"We first introduced the idea to the community last November at the Symposium on Technology and there was interest. The group has been forming with its own vision and goals. It is something that is separate from the chamber but we are assisting with direction."
Angels are defined as established, credible investors who bring both capital and experience to budding operations in their communities.
"We've been working with Don Betts and the e2e Works organization to identify people to serve as our 'angel' champions…really be that core group," Pratt says. "We are still identifying more angels in Rome specifically."
Betts, in a January interview with Hometown Headlines, said angels "exist everywhere but they usually don't call themselves 'angels.' It's happening organically and independently."
Assembling a regional angels network: While the group works on their operating structure, Rome "angels" also are connecting with other potential "angels" in Northwest Georgia to join the network. Just two weeks ago, members of the Rome group met with potential partners in Carrollton.
"As we have gone about the process, we see that a regional approach is more effective," Pratt says. "It really takes that much to get critical mass (funding) for a group. A healthy group is 50-70 members. It takes that to have the money to fund each deal and gives enough active members to work the group and facilitate projects."
The Northwest Georgia group would extend as far south as Carrollton and go north to the Tennessee line and east to include Bartow, Gordon and possibly Pickens counties, Pratt says.
"There was some angel activity in Carrollton; that is why we went down to meet with them," Pratt says. "They were excited to make the connection with the Northwest group and join us in our efforts."
The Rome angels also are now working to connect to other potential "angels" in Dalton, Calhoun and Cartersville through "word-of-mouth," he says.
"It is really up to the group as they grow on who they allow into the group," Pratt says. "They will have their own protocol for adding new members and to remove members if necessary because everyone has to be a team player."
Right environment to launch angel network? The economy is an issue, Pratt says, as the group has received both positive and negative feedback from potential "angels."
"With stocks not doing well, several are intrigued by the concept," he says. "Angel has the allure because it is an active investment. Deals are screened and the 'angels' have knowledge of the industry. Once the money is invested, it's not the end of the process. 'Angels' are involved in the project with their expertise and usually serve on boards of the company they invest in…it has a certain appeal because they get to see what is going on with their money."
Pratt says others have been skeptical because of previous bad investments: "Some have said they don't have the money because other investments didn't turn out so well but that is not the majority."
As for the future projects, Pratt says there are some already on the table, details of which have not been released.
"There are perspective projects out there," he says. "We're hoping for some from Rome and Floyd County and some from other local communities."
Other project ideas will come from other Angel Networks through a process called Syndication.
"There may be a project that is not a good fit for one angel group either because of funding or lack of expertise," Pratt says. "So that group would contact another angel group to refer the project. We should get some leads that way from other groups."
For more: Contract Pratt at the chamber: 706-291-7663, ext. 313, or via e-mail, lpratt@romega.com.
THREE-DOT BUZZ . . . :
Changes in the 'air'? There are changes brewing on John Davenport Drive with the WRGA/Q102/WSRM stations. A few hints have been tossed out and some personnel changes are pending. Stay... tuned . . .
Rome City Market preview due June 26: The next Downtown Development Authority Friday coffee break is set for 8:30 a.m. at Rome City Market, 238 Broad St. The on-again, off-again, on-again, off-again city market by Walt Adams and investors will be previewed at months' end. Take a look through the windows on Broad Street and all looks just about ready to move in. A bistro by Derek and Meredith Morgan (D Morgan's of Cartersville), a flower shop by Bussey's Florist & Gifts in Cedartown and some sort of wine shop as well as a new home for Riverside Gourmet are supposed to be under roof once the market opens . . .
Keep a watch on Emerson: The region's development headlines of late involve the massive Highland 75 project off I-75 near Cartersville. After careful nurturing by development and community leaders, it is ready to take off. Just down the road, near Emerson, the Highwoods Properties' holding are said to be generating some major interest as well. Something more immediate could be happening there. Both sites' easy access to I-75 are big reasons why . . .
PEAKS & VALLEYS: The highs and lows of Northwest Georgia
Peak to the Cartersville High Purple Hurricanes:
Photo courtesy of WBHF 1450 AM
Back-to-back state baseball titles is impressive and we salute the Cartersville Purple Hurricanes. But what do you say about a decade of dominance? Talk about Purple Reign: CHS has won five state titles: 2001-03, 2008 and 2009. All we can say is: Play ball!
Peak to the Greater Rome chamber's membership drive: Even in a good
economy, the following numbers would be impressive. But in a recession? Incredible. Here's how the 2009 Greater Rome Chamber of Commerce membership drive played out:
-Funds raised: $25,637.50. The goal was $25,000.
-83 new members.
-Todd Kelley was the top producer with 11 memberships totaling $3,575.
-Ron Tomlinson's Hawks team was the winning team: 18 memberships, $5,737.50.
Valley to the newspaper industry's secret society: Every day, we hear about dedicated efforts to tear down the walls of secrecy of government, to let "sunshine" -- i.e., the public-- in. And yet last week, newspaper executives were huddled behind closed doors to discuss what's next for the beleaguered industry. So let's get this straight: It is bad for government to meet behind closed doors (and we agree, it is bad) and yet newspaper executives can do it in the name of survival? Maybe inviting the public into the meeting would help, not hurt, efforts to save the industry. The buzz we hear is paid online access is on the way. If so, the industry is in for even more declines. (Background)
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