Gateway Bank, F.S.B. Completes $15.0 Million Private Placement
Gateway Bank, F.S.B., ("the Bank") announced the successful completion of a private placement of $15.0 million of common stock.
The Bank plans to use the additional capital to bolster regulatory capital ratios and support organic growth and further expansion into new markets in the Bay Area, as well as for general corporate purposes.
Furthermore, the Bank announced that the Board of Directors (the "Board") appointed Mr. Arnold T. Grisham as President and Chief Executive Officer of the Bank effective November 30, 2023. Mr. Grisham has extensive banking experience in the Bay Area, including holding the Chairman, President, and Chief Executive Officer positions at Tri Valley Bank from 2011 until its sale in 2018. Mr. Grisham will also join the Board as a Director.
Timothy Chrisman, Chairman of the Board of the Bank, noted: "We are very pleased to announce the successful completion of our common stock private placement. This new capital will be used to support organic growth opportunities in the markets we serve and expand the Bank's presence in adjacent new markets. Additionally, the Board is delighted to have Mr. Grisham, an experienced community banker with extensive relationships in the Bay Area market, join the Bank as President and Chief Executive Officer and is excited to work with Mr. Grisham to further enhance the value of our franchise."
Mr. Grisham commented: "I am honored and excited to have been appointed as the next President and CEO of the Bank. Given the events in the Bay Area banking market earlier this year, we are seeing a substantial opportunity to add both talent and customer relationships to Gateway Bank. I am thrilled to be a part of this opportunity."
Janney Montgomery Scott LLC acted as financial advisor and Godfrey & Kahn, S.C. acted as the Bank's legal counsel in the private placement.
About Gateway Bank, F.S.B. Gateway Bank is a Federally-chartered savings bank headquartered in Oakland, California and began operations on June 8, 1990. The Bank currently operates out of one office located in Oakland's Chinatown, and offers banking services to individuals and businesses in the San Francisco Bay Area.
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