Area board members of Infinity National Bank, which announced plans more than two years ago to open a new, business-oriented banking institution on McClintock Drive just north of Eliott Road, have withdrawn their application for a charter.
Investors had completed construction of the banking center and adjoining offices and were awaiting approval when the decision was made.
Investments made by community members were returned with interest, although board members have not so far been able to recoup the money they put into the project to get it operational.
According to board member Dave Kline, various subprime credit concerns over the past six months led to a difficult market for stock sales involving a bank and, ultimately, to the board’s decision, even though Infinity so far had issued no loans.
The market conditions extended to other financial institutions that have traditionally invested in banks, Kline said in a press release.
They have changed their focus to mergers and acquisitions as the prices of bank stocks declined. A cheap bank that is already open became a more attractive investment than one just starting.
Kline said the founding directors continue to believe Tempe is has potential for a business bank, and that two banks and a security firm have expressed interest in the Infinity building.
Infinity would like to thank all those who helped with the organization efforts and to express our regrets that we were not able to become a part of Tempe’s business community.