The Bank of Bird-in-Hand announced it plans to undertake a common stock offering in September to support growth and take advantage of market opportunities.
The expected range is anticipated to be between $15 million and $25 million in the aggregate, with an offering per share of $22 to $25 to be finalized in late August, a release said. Terms should to be confirmed late next month or early September.
Also, the bank’s board of directors declared a special cash dividend of $0.22 per share of common stock to shareholders of record as of Aug. 13.
The release noted that the bank will open its fourth brick-and-mortar branch, at 1795 W. Main St., Ephrata, on July 19. Bank of Bird-in-Hand operates three mobile branches, too, serving 16 locations in Lancaster and Chester counties.
“We are excited to be able to simultaneously announce the special cash dividend and the upcoming capital raise,” Lori A. Maley, the bank’s president, CEO and vice chairman, said in the release. She added that growth and demand in the Ephrata market warranted opening a traditional branch in the community.
Kevin J. McClarigan, chairman of the board, added: “Over the past seven years, our bank has consistently achieved above peer organic growth,” which led the board of directors to approve raising capital to help the bank maintain a strong foundation and meet its long-term goals, including further loan growth and additional fixed and mobile branch locations.
A community-owned bank serving Lancaster County and western Chester County, Bank of Bird-in-Hand, based in Ronks, specializes in agricultural, small business and consumer lending. As of June 30, its total deposits were approximately $555 million and its total net loans approximately $584 million.