United Development Bank (UDB), a proposed Washington state-chartered community bank based in Bellevue, has received conditional approval from the Federal Deposit Insurance Corporation (FDIC), allowing organizers to move forward with plans to open the bank.
The proposed bank intends to serve customers in Bellevue, across the Eastside, and throughout the greater Seattle metropolitan area.
According to proposed President and Chief Banking Officer Marty Steele, the bank is still several months away from opening and is currently focused on raising the capital required by regulators. After opening, the bank plans to concentrate on building its customer base.
The launch comes at a time when the number of community banks has declined significantly. According to data from the Federal Deposit Insurance Corporation, the number of insured banks and savings institutions in the United States fell from more than 9,300 in 2002 to fewer than 4,800 in 2022.
Steele, the former president and CEO of Seattle-based First Sound Bank, said the region has seen fewer locally controlled banking options as the financial industry has consolidated.
“Many customers still want a banking relationship built on trust, accessibility, and local expertise,” Steele said. “Our goal is to create a community bank where decisions are made locally, relationships matter, and customers have direct access to experienced bankers who understand the communities they serve.”
The FDIC’s approval requires UDB to raise at least $15 million in initial capital and demonstrate that the funds are being held in escrow. Steele said the bank’s goal is to raise closer to $20 million and that organizers are currently raising those funds with a target opening in October.
As a state-chartered community bank, UDB will be regulated by both the FDIC and the Washington State Department of Financial Institutions.
The bank also plans to seek designation as a Minority Depository Institution, a federal designation generally reserved for banks that are majority minority-owned or primarily serve minority communities. According to the bank, the designation aligns with its plans to expand access to financial services and support economic opportunities for diverse and underserved communities.
According to the bank, its proposed board of directors includes leaders from banking, law, finance, technology, entrepreneurship, and community organizations and was assembled to represent the communities UDB plans to serve.
“United Development Bank is being built to strengthen local businesses, support economic development, and expand access to banking services throughout our region,” said board chair Andy H. Yeung.
Upon opening, UDB plans to offer business banking, commercial lending, Small Business Administration lending, treasury and cash management services, consumer deposit accounts, online and mobile banking, and fraud protection services.
Steele said the bank is looking for office and branch space in Bellevue, likely outside the downtown core to provide easier parking for customers. The bank expects to occupy less than 10,000 square feet and open with approximately 20 employees.
UDB plans to begin operations with one branch and initially focus on Bellevue and the Eastside. The bank expects to start with approximately $150 million in assets and aims to reach between $200 million and $250 million in assets within five to six years.
“Bellevue has a growing amount of affluence, and it’s very diverse, and it’s very dynamic,” Steele said.
The bank’s executive team will be led by CEO Charlie Guildner, who has more than 40 years of banking experience, including serving as president and CEO of North Cascades Bank. Steele will serve as president after previously leading several Washington community banks, including Charter Bank in Bellevue, Bank of Washington in Lynnwood, and First Sound Bank in Seattle.
The executive team also includes Josh Lavik as chief financial officer and Ajay Grewal as director of information technology.
Steele led First Sound Bank for five years before it was acquired by Harborstone Credit Union in 2024. He began working on the United Development Bank initiative with Guildner in the fall.
