The proposed Eagle, Idaho-based digital business bank, which received its conditional OCC charter in March, plans to open in the fourth quarter, proposed CEO Matt Gediman said.

The Federal Deposit Insurance Corp. on Tuesday gave conditional approval for VALT Bank, a fully digital bank led by a group of former U.S. Bank executives, to receive deposit insurance coverage.

The green light marks another hurdle cleared on the Eagle, Idaho-based lender’s journey to opening. The Office of the Comptroller of the Currency conditionally approved the bank’s de novo charter application in March, “120 days on the button” from its application submission.

As part of VALT’s agreement with the FDIC, it must have initial paid-in capital totaling at least $25 million. It must submit a complete shareholder list for both its holding company, VALT Investor Group Inc., and the bank, to the FDIC. VALT must also obtain prior written approval from the FDIC for any proposed changes in management or ownership.

“Relative to some of the other recently published approvals, we were quite pleased with the minimal number of requirements,” proposed CEO Matt Gediman told Banking Dive on Thursday. “They did a really good job to make sure that they didn't duplicate [requirements from] the OCC's approval, so there was good alignment between our regulators in actually generating this document.”

VALT’s counsel and regulatory adviser said it was “one of the cleanest FDIC approvals they've ever seen,” Gediman said.

VALT’s deposit insurance approval letter sets out six conditions, including the $25 million capital requirement, and that it must open within a year of the letter’s date.

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