Arlo Bank finalizes $40M capital raise
BY: GEOFF PICKLE, DIGITAL EDITOR
Arlo Bank has finalized a multimillion-dollar capital raise following the company's formation last year.
Mark Bybee, president and CEO of Arlo Bank, said via email that more than 300 investors contributed to the capital raise that brought in $40 million. Declining to disclose the names of individual investors, he said the capital raise closed at the end of January.
Bybee said $25 million was the minimum needed for the Oct. 1 closure of Arlo Financial Holdings Inc.’s acquisition of Springfield-based Systematic Savings Bank (OTC: SSSB). Arlo Bank was formed through the Systematic acquisition.
"The additional capital gives us more strength and stability to grow the bank in the future," he said.
A news release announcing the completion of the capital raise additionally pointed to the start of construction work at Arlo Bank's south-side location.
In October, Arlo Bank purchased the former Los Cabos Mexican Grill & Cantina at 4109 S. National Ave., just south of James River Freeway, with plans for a new location in the works. Bybee previously told Springfield Business Journal that the current plan calls for Arlo Bank's 318 South Ave. branch in downtown Springfield to remain in operation when the south-side operation debuts.
The release indicates that demolition work has started, with construction to follow and a completion date expected in early fall. Q & Co. LLC is serving as general contractor for the project designed by Buxton Kubik Dodd Design Collective, and officials note Federal Protection Inc. is providing security systems and bank equipment and Hook Creative LLC is conducting branding services.
Bybee said cost estimates for the new building spanning over 8,000 square feet are not yet finalized.