Bank 1440 opening in Peoria after raising $25M in capital
A new community bank has raised nearly $25 million in startup capital.
About 700 investors, primarily from the Phoenix metro area, have financially backed Bank 1440, gobbling up a minimum of 250 shares at $10 each.
"Our at-risk capital position will be slightly under $25 million," said Dan Hudson, chief executive of NuBank, which is handling Bank 1440's organization.
Dallas-based NuBank has opened 141 banks in the U.S. and helps de novos, or new banks, raise capital, determine market demographics, prepare regulatory applications, and manage marketing and brand development.
Hudson also is tied to another entity, United Business Holdings, which is planning to open Tucson and Phoenix banks next year. Delaware-based United has raised $60 million in capital for its expansion in Arizona and other states.
Bank 1440 will open its first branch June 25 in Peoria at 83rd Avenue and focus on commercial real estate and business lending for small to medium sized firms with revenue between $1 million to $20 million.
"Peoria offers a tremendous amount of potential as the area develops," said 1440 President Jeff Crabb, a 22-year Valley banking veteran.
Crabb spent the last 15 years in business development, where he accumulated a network of clients and referrals that the bank will lean on.
"I knew that if I opened my own bank, these customers would follow me," he said.
It's a standard recipe for startup banks, with a proven success record in the Valley. The bank has spent a "couple of thousands of dollars" on traditional advertising and about $75,000 in marketing, mainly through networking and cocktail events.
Bank execs chose the name 1440, which sounds more like a Scottsdale club than a financial institution, to symbolize its 24-hour banking access. There are 1,440 minutes in a day.
"The whole idea was to be different," Crabb said.
The bank plans to open another location in Scottsdale within a couple of months, officials said. Officials hope to raise assets to $50 million after the first year, $100 in year two and $150 million in year three.
Bank 1440 got the OK from the Federal Deposit Insurance Corp. and the Arizona Department of Financial Institutions to surpass the $18 million maximum offering and is awaiting final regulatory approval.
Bank 1440
