Sept 20 - Oregon Pacific Bancorp, Florence, (OTCBB: ORPB) has raised nearly $2.4 million in new capital by finalizing a private placement of common stock to a group of accredited and institutional investors. This stock sale reinforces Oregon Pacific Bank's stability in the local economy and its ability to help local businesses, homeowners and prospective home buyers.
"The ambitious growth goals for Oregon Pacific Bank, and its clients and investors, can be realized," says James P. Clark, president and CEO, Oregon Pacific Bancorp. "We have money to loan. Businesses that were waiting to fund capital improvements or revitalize their infrastructure will find OPB ready to do business. This may be the ideal time for many of them to realize their long-range plans."
The stock sale will allow Oregon Pacific Bank to significantly increase lending to businesses and individuals within its market area of Lane, Douglas and Coos counties. Bank management estimates the sale will fund more than $24 million in new loans to support the budding economic recovery.
"This recent infusion also provides a backstop for the management of our credit portfolio, sets us up for growth in the near term, and makes additional capital available for several different potential growth scenarios," Clark said.
"In an era of negative headlines for the banking industry, Oregon Pacific Bank is instead making news with positive stories of community involvement and our ever-strengthening financial position," said Clark. "Throughout this process we have exceeded regulatory capital standards and we look forward to when the current written agreement with the regulatory agencies is fulfilled. We may pursue another capital raise in the coming year to further grow and strengthen the bank for our clients, dependent on our growth opportunities at that time."
OPB declined TARP and TARP II funds from the federal government that were intended to recapitalize banks and encourage lending. "We are proud to announce that our success in strengthening our position came without any taxpayer funds," said Clark. "Major investors share our vision of a strong future as evidenced by this capital raise, and now we are in an even better position to help them grow as we serve our local communities. We think this portends an exciting future for our clients and investors."
About Oregon Pacific Bank
Oregon Pacific Bancorp was incorporated on Jan. 1, 2003, as the holding company of Oregon Pacific Bank. Founded in 1979, the Florence, Ore.-based bank operates four branches and offers full-service banking products to clients in Lane, Douglas and Coos counties.