909 SE Bay Boulevard
PO BOX 2280
Newport, OR 97365
Oregon Coast Bank Expands Capital Base
For Immediate Release
Tuesday, December 13, 2011
Contact: Fred Postlewait
Oregon Coast Bank
Newport, OR – With bank assets growing by more than $18 million per year, the board of directors of Oregon Coast Bank recently authorized the expansion of their capital base through a private stock sale. Existing shareholders purchased $2.738 million in new capital stock, which will allow more than $34 million in additional bank growth.
“Our goal was $2 million in new capital which seemed like an aggressive goal with only 90 shareholders and in an economic environment where very few banks have been successful in raising any amount of new capital. We opened up the offering, closed it after a month and had almost 2/3 of our owners purchasing new stock,” explained Fred Postlewait, President and Chief Executive Officer.
In 2006 Oregon Coast Bank converted to a “Sub-S bank ownership” allowing its shareholders a considerable tax advantage compared to traditional “C-Corp” banks. Sub-S banks are limited to 100 shareholders but Congress did allow up to 6-generations f a single family to buy and hold stock and still count as a single shareholder.
“Our stock is owned almost entirely by 90 local families,” explained Postlewait. “In many cases the stock has been issued to grandparents, and they are passing it on to their sons and daughters and even their grandchildren. It is our intention for Oregon Coast Bank to be locally owned and operated for generations to come.”
Since opening in July 2002, the bank has grown substantially every year and now operates offices in Newport, Pacific City, Lincoln City, Waldport and Toledo. Oregon Coast Bank has had a very positive affect in the communities it serves having reinvested more than $370 million in the form of loans to local families and businesses.