Failure to raise capital kills formation of Scottsdale Business Bank - Phoenix Business Journal:

Air Purifiers Scottsdale
The agency, which oversees states bank formationsand charters, deniedf the community bank’s application to extend the fundraisintg period beyond the traditional 12 months. “It took them way too and they didn’t raise nearly enough,” said Tom ADFI division manager for banka andtrust companies. “Plus, they lost all theidr management team.” The Phoenix Business Journal reported in earluy May that Scottsdale Business Bank had filed an extensio n with ADFI to raisebetwee $10 million and $15 million.
The commercial bank originally was expected to open in the fourthb quarter of 2008 under the leadership of PresidentMichaelk Morano, but he left in April to become chief crediy officer of Towne Bank of Arizonza in Mesa. The May 27 regulatory decisiom underscores the tough environment for de novo bank s to raiselocal money. Many investorw lost big on real estate and the stockmmarket here, while small banks in metro Phoeni have lost their appeal as a safe investment Two community banks have collapsecd in the past year becausse of their exposure to bad real estatw loans, and dozens continue to According to ADFI First Western Trust Bank was the last state-charterexd bank to open in the Valley, in Novembetr 2008.
Enterprise Bank Arizona withdrew its application in Decemberr after the Federal DepositInsurance Corp. invoked an informapl moratorium on state charters in the wake of the Wall Streef collapse and globalfinancial crisis. Jack Barry, president and CEO of Arizona EnterpriseCommercial Lending, the lending arm of St. Louis-basedr Enterprise Financial Corp., told the Businesd Journal last month the bank is looking for an acquisitionb as an entrance into thePhoenix market. Scottsdalw Bank also withdrew its applicationin May. is in line to snap the de novo however. It is not expected to follow the same doomed path of ScottsdalerBusiness Bank.
“We did not gather up the namew of prospective buyers in advancer of the time we got permissioh to sellthe stock,” said Ernier Garfield, who assembled the management teams behind both Paradise Valley National Bank and Scottsdales Business Bank. Garfield, a former state treasured and longtimeRepublican politico, said PVNB has more than 1,0000 potential investors, as oppose to only a “handful” garnered by Scottsdal e Business Bank. “Hopefully that will make a said Garfield, chairman of Inc. in Despite federal policy changes enactes in October to spur bank the environment for raising capital remainsz dry inthe desert.