Bank gets commitments for capital requirements
By Eric Fleischauer
email@example.com · 340-2435
A local start-up bank has obtained enough commitments for stock purchases to meet its capital requirements.
Progress Bank (in Reorganization) passed the $27 million mark in commitments for shares.
It is selling the shares for $10 each, with prospective shareholders required to purchase a minimum of 1,000 and a maximum of 150,000 shares.
“This is a huge milestone for us,” said Decatur President Bruce Pylant. “We will continue to raise capital for a few more weeks to bolster our branching activities in the future, but we have achieved our minimum commitments goal.”
Not all those who committed to buy stock have yet paid, Pylant said. A few who initially committed to stock purchases have since withdrawn those commitments.
The deadline for payment is Nov. 16. Pylant said Progress expects to exceed $30 million in capital by then.
The bank remains on schedule to open offices in Decatur and Huntsville in January, Pylant said.
“We are very pleased with the response to our stock offering from investors in Morgan and Madison counties,” said President and Chief Executive Officer David Nast. “It reinforces our belief that this community shares our vision of having a locally owned and managed bank.”
After the capital from the stock sale is placed in escrow, the Federal Deposit Insurance Corp. must give final approval to the venture. It already has given preliminary approval.
Progress Bank has leased office space in the Union Planters building at 255 Grant St. S.E., which will be renamed Progress Tower, for its Decatur office.
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