Elemi Bank applies to FDIC and seeks $25m in capital to launch corporate offering
A new US banking challenger, Elemi Bank, has taken one step closer to launch, according to a recent filing with the US Federal Deposit Insurance Corporation (FDIC).
FDIC receives application from Elemi Bank
To be based in Burbank, California, the bank is expected to establish itself as a state-chartered, corporate bank with a core B2B offering serving small and medium-sized enterprises (SMEs), professionals and real estate investors and owners, according to sources at The Bank Slate.
A filing made with the FDIC on 27 November for a new deposit insurance application reportedly suggests that the bank’s founding party intend to raise $25 million to bring the bank and its offering to life. However, it’s not currently known when or from where it will attempt to attract such funding.
Its founding members are thought to include Dana Johnson, MidAmerica Capital Partners’ president and chief investment officer since 1999, who will serve as the bank’s executive chairman, and Gustavo Mossé, Frank Mushmel, Raj Patel and Michael Shaheen, who will serve as board members.
The board is also expected to include Michael Helmuth, principle of FSA Group and former group managing director of Bank of Southern California. However, the bank’s proposed CEO has not been disclosed, other than the filing reportedly describing them as an experienced banker.
Elemi Bank must now wait on tenterhooks for the FDIC’s approval before it attempts to generate fresh capital. In light of the timelines incurred by the regulator’s other hopeful applicants, its approval could arrive by at least the middle of next year.
