BIRD-IN-HAND, Pa.--(BUSINESS WIRE)--Lori A. Maley, President and CEO of the Bank of Bird-in-Hand announced today that the Bank intends to undertake a common stock offering commencing in the third quarter of 2018 to further support the Bank’s continuing growth. The currently expected range of the offering is anticipated to be between $20 million and $25 million in the aggregate. The offering price per share is expected to be finalized in late August and is currently expected to be in the range of $13 to $15 per share, on a post-stock split adjusted basis. The previously announced 5-for-4 stock split, effective in the form of a stock dividend, will become effective on July 31, 2018.
Kevin J. McClarigan, Chairman of the Board, noted that “The growth of the Bank since it opened in December 2013 has well exceeded our expectations. Additional capital will provide the Bank with the resources to build on that growth and plan for the long-term future of the Bank, including additional, yet currently unidentified, branch locations.” He added, “The entire Board of Directors is very pleased and excited by the community’s response to the opening of the Bank, the capital raise in 2016, and our unique business model. We are committed to our customers and residents of our community to build upon that success. Raising additional capital will help us reach this goal.”
The Bank is contacting its existing shareholders and others in the community prior to finalizing the terms of the offering. The Bank anticipates raising the capital from shareholders, retail and bank-known institutional investors, and the community.
Bybel Rutledge LLP is serving as legal counsel and Commonwealth Advisors, Inc. is serving as financial advisor to Bank of Bird-in-Hand in connection with the stock offering.
THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF THE COMMON STOCK. THE OFFERING IS BEING MADE ONLY BY THE WRITTEN OFFERING CIRCULAR WHEN AVAILABLE.
About Bank of Bird-in-Hand
Bank of Bird-in-Hand is a community-owned bank serving Eastern Lancaster County and Western Chester County with a strong focus on agricultural, small business, and consumer lending. Its main branch and office is located at 309 North Ronks Road, Bird-in-Hand, PA 17505. It operates an additional branch at 3540 Old Philadelphia Pike, Intercourse, PA 17534. The Bank also recently established a mobile branch which has a schedule of hours of operation at nine locations in Lancaster County. The unit, which is a twenty-nine-foot-long full-service mobile bank on wheels, has a built-in ATM, walk-up customer service window and also room inside for Customer Service representatives to open accounts and transact business.
As of June 30, 2018, Bank of Bird-in-Hand had total assets of $308 million, total deposits of $249 million, total loans of $269 million, and total shareholders’ equity of $30 million.
A Warning About Forward-Looking Statements
In addition to historical information, this document may contain forward-looking statements. Examples of forward-looking statements include, but are not limited to, (a) projections or statements regarding future earnings, expenses, net interest income, other income, earnings or loss per share, asset mix and quality, growth prospects, capital structure, and other financial terms, (b) statements of plans and objectives of management or the Board of Directors, and (c) statements of assumptions, such as economic conditions in the Bank’s market areas. Such forward-looking statements can be identified by the use of forward-looking terminology such as “believes,” “expects,” “may,” “intends,” “will,” “should,” “anticipates,” or the negative of any of the foregoing or other variations thereon or comparable terminology, or by discussion of strategy. Forward-looking statements are subject to certain risks and uncertainties such as local economic conditions, competitive factors, and regulatory limitations. Actual results may differ materially from those projected in the forward-looking statements. We caution readers not to place undue reliance on these forward-looking statements. They only reflect management’s analysis as of this date. Such risks, uncertainties and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: the effects of new laws and regulations, including the impact of the Tax Cut and Jobs Act and Dodd-Frank Wall Street Reform and Consumer Protection Act; effects of short- and long-term federal budget and tax negotiations and their effect on economic and business conditions; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market area and elsewhere, including institutions operating locally, regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the internet; technological changes; the interruption or breach in security of our information systems and other technological risks and attacks resulting in failures or disruptions in customer account management, general ledger processing and loan or deposit updates and potential impacts resulting therefrom including additional costs, reputational damage, regulatory penalties, and financial losses; ineffectiveness of the business strategy due to changes in current or future market conditions; the effects of economic deterioration on current customers, specifically the effect of the economy on loan customers’ ability to repay loans; the effects of competition, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products and services; interest rate movements; difficulties in integrating distinct business operations, including information technology difficulties; disruption from the transaction making it more difficult to maintain relationships with customers and employees, and challenges in establishing and maintaining operations in new markets; volatilities in the securities markets; slow economic conditions; and acts of war or terrorism. The Bank does not revise or update these forward-looking statements to reflect events or changed circumstances.