DADE CITY - A new bank started with $20 million from local investors and business people will open its doors Dec. 10.

Florida Traditions Bank expects to lend to small-business owners, farmers and ranchers, said Bud Stalnaker, president of the new venture. The bank also wants to cater to those customers' personal financial needs, including checking accounts, and auto and home-equity loans. Its target market is east Pasco County and Spring Hill.

Stalnaker, a career banker, said some customers want a bank with locally based staff and executives.

"They can walk in here and talk to the president," he said. "They can't do that in a lot of places, and we'll come to their businesses and open their accounts for them if they can't get here."

Florida Traditions is opening in the former Wachovia bank at 14033 Eighth St. in downtown Dade City. Backers purchased the building for $1.9 million in April after Wachovia consolidated at its downtown branch.

Florida Traditions invested an additional $600,000 in repairs and renovations, and hired 20 people.

Now, the Florida Office of Financial Regulation has granted the privately owned bank permission to open its Colonial-style main office.

In another two months, employees will be assigned to branches opening in Zephyrhills and Spring Hill in February.

Stalnaker said the bank will support local community efforts, such as the Pasco County Fair and youth sports. The bank also will permit nonprofit and community groups to use its second-floor boardroom for meetings.

While acknowledging that the bank is opening at a time some economists fear the economy is slowing to the point of a recession, Stalnaker said such projections don't worry him.

"It is really the best time to open," he said. "I don't have any loans on my books that are going bad. I haven't made any loans on real estate values that I believe were highly inflated."

Florida Traditions Bank does face the challenge of competition from other community banks, though, such as the First National Bank of Pasco, also based in Dade City.

Stalnaker said the new institution, which has about 340 local shareowners, should be profitable in 12 to 15 months.

Reporter Jo-Ann Johnston can be reached at (352) 521-3062 or jfjohnston@tampatrib.com.