With its new branch under construction up the road, a local bank has found a new, separate home for its back office, while also dipping its toe for the first time into residential mortgage lending.
New Horizon Bank in Powhatan earlier this month purchased a 9,000-square-foot office building that will serve as its operations center.
It paid $750,000 for the property at 2442 New Dorset Circle, which sits on 1.6 acres and previously housed an office for software company K12 Enterprise.
The new office will complement the bank’s new branch under construction a mile away at 1906 Anderson Highway. It’s among the first pieces of a 7-acre commercial project dubbed Stoneridge, conceived by the real estate arm of the Luck Cos.
The nearly decade-old bank historically had its headquarters in its lone branch at 2501 Anderson Highway. It is vacating that location in favor of the new 3,700-square-foot Stoneridge property and had been in search of separate office space for other operations.
CEO Tommy Bourque, who joined New Horizon late last year, said only light renovations are needed on the office space, which gives the bank room to grow.
“We could triple, quadruple the size of the bank and still do most of our operations out of there,” Bourque said. “There’s lots of room for growth and we got a good price.”
The building also will have a community room that can be used for free by various community groups.
The bank was represented in the New Dorset Circle deal by Thalhimer broker David Crawford.
The $76 million bank will move 15 of its 24 employees to the new office, with the rest working out of the new branch. Bourque said it hopes to have the branch open later this year.
Since taking over as CEO in late 2017, Bourque also has carried New Horizon for the first time into residential mortgage lending.
Using an employee already on staff, the bank is doing brokered mortgages, which will be sold off into the secondary mortgage market, and in-house mortgages that will be kept on the bank’s books.
He said it will focus primarily on lending on properties in Powhatan, particularly larger plots of land that typically don’t qualify for loans that can be sold off into the secondary market.
Bourque said it’s a strategy that was successfully employed at his previous employer, Oldtown Bank in Waynesville, North Carolina, where he had been head of lending prior to its acquisition by larger competitor Entegra Bank.