Buttonwood Financial Newsletter Article


Scottsdale Community Bank to Become Arizona’s Newest Community Bank

By Colin Thierry

October 28, 2020

The Federal Deposit Insurance Corporation (FDIC) has given Scottsdale Community Bank (SCB) conditional approval to open as Arizona’s first new community bank in 12 years.

After the 2008 recession, SCB Board Chair George Weisz said that the FDIC put much more emphasis on bankers buying troubled banks over establishing new ones. The FDIC’s approval of SCB concluded a multi-year process to establish the state’s first community bank in over a decade.

“This is a very exciting achievement for our outstanding organization and is a strong signal for positive economic development in the city of Scottsdale and the state of Arizona,” said Weisz. “We will be a dynamic bank for a dynamic community. We are very proud to create a high-caliber financial institution. It will be a valuable resource for our community at a time when it is needed the most. This will be a true community bank.”

Scottsdale Community Bank plans to combine state-of-the-art fintech technology with personalized relationship banking. The combination will change the landscape of business banking in Arizona.

Ownership and management will work out of its single Scottsdale headquarters location. The bank’s motto is “local commitment, global vision.” SCB will primarily serve small and medium-sized businesses. It will provide loans, deposit assistance and full business service.

The bank’s service area includes the Scottsdale, Paradise Valley, north Tempe and east Phoenix regions. SCB will also provide services to family-owned businesses, family offices and non-profit organizations.

In terms of providing services for businesses during the pandemic, Weisz pointed to SCB’s fintech technology for digital banking services. Additionally, he said the bank underwent a pandemic forecast before FDIC approval.

READ MORE: Fintechs Gain Value as Public Bank Index Falls

Scottsdale Market

“The Scottsdale market is drastically underserved in providing personalized banking services in our area,” said SCB president Neill LeCorgne. “There is a tremendous opportunity in a highly desirable place that is known as one of the fastest-growing financial centers and business escalation areas in the nation.”

There are only 10 community banks in Arizona. Conversely, there are 335 in Texas, 70 in California and 65 in Colorado.

“We are excited to launch a new community bank in Scottsdale at a time when many clients are looking to work closely with a local financial partner through these challenging economic conditions,” LeCorgne added. “Our greatest opportunity is rooted in our local decision-making combined with high-level service and having our bank’s products and services delivered through the most innovative banking platforms available in the industry today.”

SCB Next Steps

SCB’s next step is to complete its $16 million capital raise.

“We are in the home stretch of our capital raise,” Weisz said. “(It) provides a rare opportunity to be on the ground floor, as a founding investor, in a bank. We designed the bank as a win-win for both investors and the community. (This) is what makes it so worthwhile. Our guiding principle is, ‘Doing well for our investors by doing good for our community.'”

Additionally, SCB expects to be active with the Arizona Bankers Association. It is led by President Paul Hickman, Board of Directors and staff. The AzBA works to promote a healthy financial services industry for the state of Arizona.

“We are very proud of our outstanding, first-class Board of Directors and executive staff that we believe is one of the best leadership teams in the country,” added SCB Vice-Chair Hemant Patel. “The governing group has over 225 years of banking service with diverse business backgrounds and significant involvement in public service, non-profits and community service. SCB has founders and past presidents of other community banks service on their board.

“Additionally, the bank’s board members include a trustee for the Disney Trust, a national expert on family business and others representing a wide variety of business interests. Banking is a bit of a legacy in the Weisz family. For many years, his father served as a board member of the Harris Bank in Chicago, which became part of BMO Harris.”