Locality Bank CEO Testifies Before Congress, Urges Reforms to Improve Access to Community Banking for South Florida Businesses

Fort Lauderdale, FL (May 16, 2025) – Keith Costello, Chairman, President, and CEO of Locality Bank, testified before the U.S. House Subcommittee on Financial Institutions on May 14, 2025, to advocate for reforms that would encourage the creation of new community banks. His testimony highlighted the challenges small business owners face when banking options are limited by consolidation and regulatory barriers.

Costello appeared as part of a panel during the hearing titled “Enhancing Competition: Shaping the Future of Bank Mergers and De Novo Formation.” He drew on his nearly four decades of banking experience and spoke to the need for practical changes that would reinvigorate community banking nationwide.

“In 2022, we launched Locality Bank in Fort Lauderdale, Florida,” Costello told lawmakers. “It was the first new bank opened in South Florida since 2009.” Since that time, a small number of other new banks have launched in the region, but Costello emphasized the urgency of removing obstacles that discourage more entrepreneurs from entering the market.

Costello, who previously co-founded Broward Bank of Commerce and served as President of First Green Bank, outlined how high capital requirements, inflexible business planning rules, and rising compliance costs have made de novo bank formation increasingly difficult.

“Community banks are small businesses that serve other small businesses,” Costello said. “Starting and running one gives you a deep appreciation for the challenges entrepreneurs face daily, something that can’t be replicated by working in a large corporate financial institution.”

Costello endorsed the Promoting New Bank Formation Act(H.R. 478), a bipartisan proposal that would introduce phased capital requirements and allow for more flexibility in a new bank’s early business operations. He noted that Locality Bank raised $38 million in capital from local investors and grew to more than $300 million in assets within three years, despite operating in an environment that deters most new bank launches.

Costello’s testimony underscored the importance of ensuring community banks remain accessible and viable for business owners in South Florida and beyond. “If we want more de novo banks and all the community value that they bring, we must make the economics viable,” he said.

To view full details about the hearing, including participant bios and legislative context, visit the official hearing event page. A full video replay of the hearing is available on YouTube. Keith Costello’s opening statement begins at the six-minute mark. His written testimony is available through the House Financial Services Committee.

About Locality Bank

Locality Bank is a community bank headquartered in Fort Lauderdale, Florida, with a mission to empower local businesses to maximize their potential. By combining white glove service and local market expertise with user-friendly technology, Locality delivers a uniquely personal and modern banking experience tailored to South Florida entrepreneurs. Visit localitybank.com, call (888) 238–5053, or email info@localitybank.com. Follow us on Facebook, X, LinkedIn, Instagram, and YouTube to stay connected.

Contact: Ryan Swanno, (954) 799-0900 or rswanno@localitybank.com