E8-27183. Formations of, Acquisitions by, and Mergers of Bank Holding Companies

The companies listed in this notice have applied to the Board for approval, pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) (BHC Act), Regulation Y (12 CFR Part 225), and all other applicable statutes and regulations to become a bank holding company and/or to acquire the assets or the ownership of, control of, or the power to vote shares of a bank or bank holding company and all of the banks and nonbanking companies owned by the bank holding company, including the companies listed below.

The applications listed below, as well as other related filings required by the Board, are available for immediate inspection at the Federal Reserve Bank indicated. The applications also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing on the standards enumerated in the BHC Act (12 U.S.C. 1842(c)). If the proposal also involves the acquisition of a nonbanking company, the review also includes whether the acquisition of the nonbanking company complies with the standards in section 4 of the BHC Act (12 U.S.C. 1843). Unless otherwise noted, nonbanking activities will be conducted throughout the United States. Additional information on all bank holding companies may be obtained from the National Information Center website at www.ffiec.gov/​nic/​.

Unless otherwise noted, comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors not later than December 12, 2008.

A. Federal Reserve Bank of Philadelphia (Michael E. Collins, Senior Vice President) 100 North 6th Street, Philadelphia, Pennsylvania 19105-1521:

1. Cornerstone Financial Corporation, to become a bank holding company by acquiring 100 percent of the voting shares of Cornerstone Bank, both of Mount Laurel, New Jersey.

B. Federal Reserve Bank of Richmond (A. Linwood Gill, III, Vice President) 701 East Byrd Street, Richmond, Virginia 23261-4528:

1. Hampton Roads Bankshares, Inc., Norfolk, Virginia, to acquire 100 percent of the voting shares of Gateway Financial Holdings, Inc., Virginia Beach, Virginia, and thereby indirectly acquire Gateway Bank and Trust Co., Elizabeth City, North Carolina.

C. Federal Reserve Bank of Atlanta (Steve Foley, Vice President) 1000 Peachtree Street, N.E., Atlanta, Georgia 30309:

1. BancTenn Corp., Kingsport Tennessee, to acquire up to 20 percent of the voting shares of Paragon Commercial Corporation, and thereby indirectly acquire voting shares of Paragon Commercial Bank, both of Raleigh, North Carolina.

D. Federal Reserve Bank of Kansas City (Todd Offenbacker, Assistant Vice President) 1 Memorial Drive, Kansas City, Missouri 64198-0001:

1. FSB Investments, LLC, Oklahoma City, Oklahoma, to become a bank holding company by acquiring up to 100 percent of the voting shares of MidWest Community Financial Corporation, Midwest City, Oklahoma, and thereby indirectly acquire The First State Bank, Canute, Oklahoma.

Board of Governors of the Federal Reserve System, November 12, 2008.

Robert deV. Frierson,

Deputy Secretary of the Board.