Bank of Burlington raises over $30 million in seed capital

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Vermont Business Magazine Bank of Burlington (in organization) announced on Friday that it had raised a total of $33 million in seed capital. The new local community bank (in the process of being organised) had planned to raise $24-30 million with the possibility of accepting an additional 10%. A first fundraising was carried out in July 2021 and raised the first $2.85 million to finance training costs.

The primary capital increase commenced on April 4, 2022, following the granting of a preliminary charter from the Vermont Department of Financial Regulation on March 16, and closed on April 30, after being oversubscribed. The Bank of Burlington (in organization) accepted the maximum of $33 million in capital.

Their next step will be approval by regulators, which they anticipate in the coming weeks, followed by an opening at the end of the summer.

Arthur Loomis, President and CEO of Loomis & Co, Inc, an investment bank consistently ranked among the top three providers of services to community banks in the Northeast, noted Bank’s rapid fundraising of Burlington:

“Since 1992, only one or two other de novo banks headquartered in the North East have been able to raise more than $30 million in seed capital. None have done it as quickly as Bank of Burlington (in organization).

Loomis continued, “The key in my mind is that over 96% of investors are either individuals who live locally in Vermont or are part of a Vermont-based business. Such strong support for community investment attests that the Bank of Burlington (in organization) is addressing a critical local need for banking services with a highly valued management team.

Geoffrey Hesslink, CEO/President of Bank of Burlington (in organization), agreed that the strong support from Vermont investors reflects the need for a new bank that is committed to Vermont businesses and communities:

“We are delighted with the composition of our investor base and the speed with which we have completed the capital increase. We thought local bank ownership was important, and the ideal bank investor was a Vermont business owner who would be a bank customer. The overwhelming response to our capital raise demonstrates market demand for a local commercial bank, and we are looking to serve the Vermont community starting this summer.

Bank of Burlington (in organization) will offer business and consumer deposit accounts, cash and cash management services, online and mobile banking, a full range of commercial loans and letters of credit.

Bank of Burlington (under development) will serve Vermont’s small and medium-sized businesses and provide growth capital to this important sector of the Vermont economy.

Bank of Burlington (in organization) filed for deposit insurance with the FDIC and for a state banking charter on November 30, 2021.

Approval to host was granted by the Vermont State Department of Financial Regulation on March 16, 2022.

For more information on Bank of Burlington (in organization), visit www.bankofburlington.com

BURLINGTON, VT – June 17, 2022. Bank of Burlington

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