Friday, January 18, 2013

NorthSide Bank raises $2million for future growth

(Media Release) - NorthSide Bank announced today that it has successfully broken escrow on its recent private placement of restricted stock by raising in excess of $2 million to support the bank's future growth. It took the bank two months to raise the capital needed and as of December 31, 2012, the secondary capital raise brings the bank's total risk-based capital ratio to 8.27% and Tier 1 leverage ratio to 5.10%.  Both percentages are above the thresholds considered adequately capitalized by banking regulators.


NorthSide Bank is one of only two remaining community banks in Bartow Co. and the bank has not received any government assistance.  The bank was ranked 16th out of 114 in the state of Georgia for Small Business Administration 7(a) loans granted through September 2012. 


"It says a lot about NorthSide Bank that we were able to raise this capital. People are still investing, and we are holding the offering open for a while longer," said Bobby Cox, chairman of the board for NorthSide Bank.  "It also says a lot about the people in Bartow and Gordon counties who want to see a healthy community bank based where they live. We have been profitable each month for more than a year now, and we turned this bank around without taking any government money."


Investing in a local community bank is an investment in the community it serves. According to FDIC data, smaller community banks have 54% of the nation's small business loans while the nation's largest banks have only 27% of the small business loans. NorthSide Bank is using the capital it raised to continue to help small businesses grow, create jobs and fuel economic growth in the communities it serves.  The bank is also planning to add new local directors to its board.    


"A successful equity raise is quite an accomplishment in the community banking arena today. To do so reflects great effort on the part of the directors and executives of the bank to demonstrate positive and continued growth for the existing and potential new shareholders," said Carolyn Brown, president and CEO of Community Bankers Association of Georgia.


Although the bank has achieved more than the minimum requirements to break escrow, the private placement offering remains open until March 31, 2013, or until the offering is fully subscribed. The bank is optimistic about raising even more growth capital before the offering officially closes.

No comments: