Group behind Arizona de novo files with FDIC year after getting state approval

Organizers of Scottsdale Community Bank in Arizona have finally filed an application for deposit insurance.

The group, which disclosed their plans for a de novo bank in early 2018, submitted their paperwork to the Federal Deposit Insurance Corp. on Tuesday. A copy of the application wasn’t immediately available.

Organizers received approval from the Arizona Department of Financial Institutions in May 2018 to start raising capital as they put together their application. The group said last year that it planned to raise at least $16 million.

George Weisz, who would be the bank's chairman, said in an interview last year that the group had taken advantage of an Arizona law that let it sell stock without having a specific location or a president in place.

"It allows us to raise capital without spending a lot of money up front," said Weisz, a vice president at Weisz Strategies, a consulting firm that assists companies seeking to conduct business in Arizona.

The group originally planned to open earlier this year. Their new timetable is unclear.

Scottsdale Community is one of several efforts by organizers looking to start Arizona’s first new bank since 2007.

Organizers of Verdigris Bank submitted an application with the Federal Deposit Insurance Corp. last week. Verdigris, which would be based in Scottsdale, aims to raise $50 million to form an online-only, special-purpose bank.