Vermont Business Magazine Bank of Burlington (in organization) announced Friday that they have raised a total of $33 million in startup capital. The new, locally-owned community bank (in organization) had set out to raise $24-$30 million with the ability to accept an additional 10%. An initial capital raise was completed in July of 2021 and raised the first $2.85 million to fund the formation costs.
The primary capital raise began on April 4, 2022, following the granting of a preliminary charter from the Vermont Department of Financial Regulation on March 16, and was closed on April 30, after becoming oversubscribed. The Bank of Burlington (in organization) accepted the maximum of $33 million in capital.
Their next milestone will be approval by the regulators, which they anticipate in the coming weeks, followed by an opening in late summer.
Arthur Loomis, President and CEO of Loomis & Co, Inc, an investment bank consistently ranked among the top three service providers to community banks in the Northeast, remarked on the speed of Bank of Burlington’s capital raise:
“Since 1992, only one or two other de novo banks headquartered in the Northeast have been able to raise upwards of $30 million in start-up capital. None has done it as quickly as Bank of Burlington (in organization).”
Loomis continued, “The key in my mind is that over 96% of the investors are either individuals who live locally in Vermont or are part of a Vermont-based business. Such significant community investment support attests to Bank of Burlington (in organization) fulfilling a critical local need for banking services with a highly-regarded management team.”
Geoffrey Hesslink, Bank of Burlington (in organization) CEO/Chairman, agreed that the strong support from Vermont-based investors reflects the need for a new bank that is committed to Vermont businesses and Vermont communities:
“We are delighted with the composition of our investor base and the speed with which we completed the capital raise. We felt local ownership of the bank was important, and the ideal bank investor was a Vermont business owner that would be a customer of the bank. The overwhelming response to our capital raise demonstrates the market demand for a local commercial bank, and we look to serve the Vermont community as early as this summer.”
Bank of Burlington (in organization) will offer business and consumer deposit accounts, cash management and treasury services, online and mobile banking, a full suite of commercial loans, and letters of credit.
Bank of Burlington (in organization) will serve small to mid-size businesses in Vermont and will provide growth capital to this important sector of the Vermont economy.
Bank of Burlington (in organization) filed an application for deposit insurance with the FDIC and a State Banking Charter application on November 30, 2021.
The permission to…
Read More: Bank of Burlington raises over $30 million in startup capital
