Bridgehampton - The Organizer Group of Georgica Bank, a proposed lending institution designed to cater specifically to residents on the East End, announced Monday, Nov. 24, that it has withdrawn its application for a national charter as they did not expect to meet their fundraising target by the Dec. 3 deadline.

The group was able to raise $17 million from more than 260 investors as of Nov. 24, however federal approval was conditioned on their ability to raise $25 million by Dec. 3. "We realized we were running out of time," President and CEO of the organizer group Christopher Becker explained, "We decided to withdraw our application based on the probability that we would not reach our minimum $25 million in capital."

"We're very proud to have raised $17 million," Sandra Novick, Senior Vice-President and Chief Retail Banking Officer of the organizer group, asserted, claiming that their failure to raise the required amount was "collateral damage of the economic crisis" that has frozen credit markets and created even more volatile swings on Wall Street. Efforts to gain a federal charter were spearheaded in early 2008.

"We thought it would be a great time to open a bank with good capital and a clean balance sheet," Becker contended, reasoning that a fresh lending institution could avoid the pitfalls that have crippled the banking industry nation-wide. However their fundraising efforts "hit a brick wall," according to Becker, as the tightening economy limited the amount of capital that investors were able to put up.

"Our business plan was strong and supported by the banking regulators," Group Chairman Leonard I. Ackerman asserted, "Unfortunately our efforts to raise capital coincided with one of the most turbulent times in our country's financial history."

The full $17 million of capital that was successfully raised is waiting in escrow accounts for the individual investors to claim, with any residual funding going to the heavily invested members of the organizer group. Several members of the group will be taking a loss, according to Becker, however independent backers will see their entire investment returned.

"I firmly believe we have a great concept," Ackerman contended, "and that at another time, this venture would be possible."

"For now, everyone is going to go on with their professional lives," Becker stated. While the group has not discussed any plans to begin another venture in the near future, both Becker and Novick claimed that investors expressed an eagerness to participate in whatever comes next. "They told me, 'If you can do this again, please keep my name on the list,'" Becker explained. "We were taken aback by the outpouring of positive feeling," Novick asserted. "We're very proud of the group's efforts," Becker commented, "and we'd like to thank the community for all their support."