On July 28, Farmers Branch-based TYME Bank withdrew its de novo application with the Federal Deposit Insurance Corp. due to economic uncertainty as COVID-19 cases started rising in the state, but the bank’s CEO says the company may resubmit its application as the economy improves, according to S&P Global Market Intelligence.

“Things started getting better, they started reopening, and then Texas kind of re-emerged as a hot zone,” CEO Joe Hansen said in an interview. “We’re just going to kind of let COVID get by this quarter and maybe next, and then we’ll have a better path forward.”

While some de novos have had issues raising capital, Hansen says that was not a concern for TYME Bank. “We had a phenomenal turnout for that,” Hansen told S&P. “We would’ve been 100 percent funded.” However, the bank was concerned about providing a profitable return to investors given the current environment, Hansen says. “We don’t want to raise the capital and then provide substandard returns.”

The prospect of opening with a strong capital position after the pandemic could be to the de novo’s advantage, Hansen told S&P. As banks tighten credit and conserve capital through the downturn, an infusion of fresh capital into the market could provide opportunities for small businesses, TYME Bank’s target client base, he says.

“Our group is strong,” Hansen says. “We’ve got some staying power, so we just want to make sure we’re making the right decision at the right time.”