New Valley Bank & Trust Cofounders Jeff Sullivan (right) and Frank Fitzgerald (left) at a public hearing before the Massachusetts Board of Bank Corporations.

New Valley Bank & Trust, the first de novo bank in Massachusetts in nearly a decade, has received initial regulatory approvals from federal and state regulators, and is now launching fundraising mode.

Bank representatives announced last week that the Springfield-based institution currently has received the initial go-ahead from both the Federal Deposit Insurance Corporation and the Massachusetts Board of Bank Incorporation. With these approvals in hand, New Valley is commencing its capital raise.

“We are extremely grateful for the support of our incorporators, founder investors, and board members, without whom we would not be able to make this bank a reality. We know that our market will benefit from another great community financial institution to respond to the needs of our region,” Frank Fitzgerald, chairman of the board of directors for New Valley, said in a statement. “We also acknowledge the important role that the FDIC and the Division of Banks have played throughout the application process; we thank them for their professionalism and guidance.” 

The FDIC approved New Valley’s application for federal deposit insurance and to establish a domestic branch, subject to customary pre-opening conditions, on Nov. 2.  The Massachusetts Board of Bank Incorporation approved New Valley’s petition to establish a bank and issued a certificate of public convenience and advantage on Nov. 8.

“We are excited to clear these important hurdles in the formation of New Valley Bank & Trust. We are building a team of talented bankers who are all working very hard to make this dream a reality,” Jeff Sullivan, New Valley’s proposed president and CEO, said in a statement. “The energy and vitality of our team is a direct result of the positive feedback and encouragement we have received from the community. We look forward to continuing this momentum through to opening day and beyond.” 

The Board of Bank Incorporation’s approval is the first in a two-step approval process with state regulators.  The next step, the issuance of a certificate from the Board of Bank Incorporation authorizing New Valley to transact banking business, requires that the bank raise the required capital.

Headquartered in downtown Springfield, New Valley plans to open a full-service branch location in Springfield, followed by additional locations in other communities in the region.

“We anticipate that New Valley will have over 300 shareholders from the local business community, and we envision these shareholders as both future customers as well as investors,” Sullivan said. “We are excited to continue our engagement with the community in this new phase.”

New Valley’s application anticipates an initial capital raise of between $25 million and $30 million. Potential investors interested in learning more about the required qualifications to become an investor are encouraged to contact New Valley at (413) 739-2265 or investorrelations@banknewvalley.com. The capital raise is anticipated to close as early as Dec. 14.