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 dollar stock offering.
On April 23, the Summit Bank Board met to discuss and approve the offering of $5,000,000 in additional capital at $10 per share. The offering will be open for a maximum of 30 days. The minimum investment is $25,000 and the maximum purchase amount is 100,000 shares or $1,000,000 per household. The offering will be available to new and existing shareholders on a first-come, first-served basis.
According to Summit Bank Board of Directors Chair Paul Weinhold, “We believe the raise is necessary to solidify Summit Bank’s balance sheet in relation to the significant growth of PPP loans, as well as historic and projected growth in conventional loans and as a measure of prudence in entering into a time of economic uncertainty.” The Offering Circular is available on Summit Bank’s website at: ir.sbko.bank/News.
“We are excited about Summit Bank’s growth prospects in all of our markets, said Wanichek. “While the COVID-19 virus has had a negative effect on economic activity, the Bank remains a source of strength for our clients and the communities we serve. Our team has approved, underwritten and funded nearly $90 million in Paycheck Protection Program loans to approximately 330 clients this month. We are currently working on Phase 2 of the PPP. Our local decision making, relationship based approach has resonated with current clients.”
The offering will be managed by the company who will administer all subscription notices. The subscription notice is attached to the Offering Circular.
Summit Bank, as of the end of the 2020 first quarter, reported net loans of $464.2 million, an increase of $26.7 million for the quarter and an increase of $106.5 million or 29.8 percent over March 31, 2019.