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R U Stuck?

In today's uncertain economic environment and guarded investment outlook, the prospect of a de novo bank meeting its required capital goal in a timely fashion is not as likely as it was just a few years ago.

Therefore, the risk is high that your offering may not be fully subscribed. Should you not be able to raise sufficient capital to open the bank, your own personal "organizational funds" will be at risk as well as your reputation within the community. It is difficult for first-time bank organizers to fully appreciate the enormity of the task involved in convincing prospects to actually invest in a new bank.

In California alone during the last 18 months the future of the following organizing banks has come into doubt:

  • E-Comm National Bank needed between $15 and $20 million and raised only $8 million.

  • Pacific Commerce Bank needed to raise between $8.5 million and $10 million and only raised in the range of $3 million.

  • Horizon Bank of California needed to raise between $7 and $8 million and raised only $4 million.

In each scenario the above banks went to the maximum time allowed by their regulatory agency, and subsequently had to withdraw their applications. These are not easy times in which to sell bank stock. Also, be reminded that when you first joined your group of fellow organizers it was not for the purpose of becoming a professional stock salesperson. However, there is a viable solution to your dilemma, contact Bankmark!

Bankmark is the only bank-consulting group with a 100% record of completing the stock sale for its clients, whether we are engaged after they have become "bogged-down" during the process or we initialized the project. We even assisted all our California clients in reaching their capital goals during teh meteoric stock surge and then the dot-com debacle of 1997-2001. Through it all, our clients were able to successfully complete their entire capital program, a record that is unmatched within the industry.

So, if you represent one of the many groups still in the organizational stage or perhaps one that has just recently filed an application, calculate the cost and risk of not being able to quickly close out your stock offering. Make the assessment before you find that you have dug a hole that is if not impossible, certainly expensive to get out of.

Give us a call at 805.547.8850. We will be pleased to discuss your situation with you and give you the benefit of our view of the marketplace today. You will be glad you did.