Police said the man entered the Bank of America at 700 Jefferson Ave. around 2:10 p.m. and reportedly demanded money from a teller.
The teller was able to alert another employee who called police to report the robbery in progress.
Officers arrived on the scene and set up a perimeter around the bank. With continual updates from an employee inside the bank, officers were able to quickly find the suspect after he left the building, police said.
Officers arrested the suspect, identified as 66-year-old transient Hugo Carranza, on suspicion of robbery, police said. He was taken to San Mateo County Jail.
All of the money stolen was returned to the bank.
The suspect was unarmed during the robbery and no injuries were reported.