EUGENE, Ore.--(BUSINESS WIRE)--Craig Wanichek, president and chief executive officer of Summit Bank (OTC Pink: SBKO), today announced that the Summit Bank Board of Directors unanimously approved a $5 million stock offering to support continuing strong growth in its Eugene/Springfield and Central Oregon markets.
On February 27, the Summit Bank Board met to discuss and approve the offering of 392,156 shares at $12.75 per share or $5,000,000 in additional capital. The capital raise will further enhance the Bank’s already strong capital position as it addresses perceived opportunities stemming from recently announced acquisitions in both of its primary markets. An offering circular and subscription agreement is available at both its Eugene/Springfield and Central Oregon office locations as well as on its web site at:
The offering is open for 30 days. The minimum purchase amount is 1,000 shares and the maximum purchase amount is 39,216 shares or approximately $500,000 per household. The offering will be available to new and existing shareholders on a first-come, first-served basis.
“We are excited about our results and continued growth prospects in both markets,” said Craig Wanichek, president and CEO of Summit Bank. “Our local decision making, relationship-based approach has resonated with current clients, resulting in three consecutive years of over 20% growth in loans.”
The offering will be managed by the Bank who will administer all subscription notices. The Bank at fiscal year-end 2016 reported net loans of $227 million, up from $184 million in 2015. The Bank reported $25 million in capital and $43 million in cash and securities at the end of 2016.
“We reviewed our current price and market conditions when setting the price,” said Scott Goldstein, senior vice president and chief financial officer. “We’re confident about the prospects for our Bank and also the price, which takes into consideration what the board believes are positive future prospects for growth.”
With offices in Eugene and Bend, Summit Bank is a business bank that specializes in providing high-level service to professionals and medium-sized businesses and their owners. Summit Bank is quoted on the NASDAQ Over-the-Counter Bulletin Board as SBKO. Summit is the number one community bank lender in Oregon for SBA Financing. Summit Bank is designated this year as a 100 Best Companies to Work for in Oregon, according to Oregon Business Magazine.
Please refer to the prospectus for additional detailed information and risk factors regarding the offering and the Bank.
This press release contains certain forward-looking statements. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. These forward-looking statements include, but are not limited to, (i) statements about our plans, objectives, expectations and intentions and other statements that are not historical facts, and (ii) other statements identified by words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “will,” “plans” or similar words or expressions. Some of the factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to, the following possibilities: our ability to execute our business strategy successfully, revenues are lower than expected; credit quality deterioration that could cause an increase in the provision for credit losses; competitive pressure among depository institutions increases significantly; changes in regulatory environment and/or regulatory compliance burden; changes in consumer spending, borrowings and savings habits; a change in the interest rate environment reduces interest margins; asset/liability repricing risks and liquidity risks; general economic conditions, particularly those affecting real estate values, either nationally or in the market areas in which we do business, are less favorable than expected; loss of key personnel; the effects of and changes in monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; continued volatility in the credit or equity markets and its effect on the general economy; demand for the products or services offered by the Bank; and the costs and effects of legal, accounting and regulatory developments.