FDIC approves Massachusetts de novo application

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The Federal Deposit Insurance Corp. has approved another de novo effort.

New Valley Bank & Trust’s application for deposit insurance was approved earlier this month. The Springfield, Mass., de novo, which applied in the spring, is set to become the state’s first new bank since 2008.

Jeffrey Sullivan, a bank consultant and former community banker, is expected to serve as the bank’s CEO. Sullivan previously told American Banker that New Valley will rely on technology and experienced talent to scale and compete.

"Technology has really changed the game in the last few years, and the idea of starting with brand-new technology is really exciting," Sullivan said earlier this year.

New Valley will serve individuals and small and midsize businesses in western Massachusetts.

The FDIC set certain conditions that New Valley, previously named Green Apple Bank & Trust, must follow. It must raise at least $25 million in initial capital and have an adequate loan-loss allowance from the date that deposit insurance is effective.

The bank must notify the FDIC of any plans to establish loan production offices in the first three years of business. New Valley must also develop and implement a Community Reinvestment Act plan.

Calls to New Valley were not immediately returned. The company has not yet announced its opening date.

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De novo institutions Community banking Capital Massachusetts