A group of investors are establishing a new institution in Pennsylvania named Bank of Bird-in-Hand in hopes of ending the de novo drought that has plagued the market these past two years.

A de novo bank is defined by the Federal Reserve Bank of Chicago as a state bank in operation for less than five years.

Former bankers formed Bank of Bird-in-Hand and intend to rely on their decades of experience to help the firm navigate through a myriad of regulatory and fundraising hurdles that exist, SNL Financial said.

The bank’s chairman is Elmer Stoltzfus, who previously played a role in creating HomeTown Heritage Bank. William O’Brien, former senior agricultural lender at National Penn Bank, is chief operating officer. 

The organizers have not revealed how much capital they are seeking to start the institution until regulatory approvals are solidified.

An application for a de novo charter was filed with the Federal Deposit Insurance Corportation, which noted the group has already raised $20 million.

The institution will focus on family-owned farms, with farm loans making up about half of the bank’s proposed loan portfolio.