BARDONIA, NY--(Marketwired - July 19, 2016) - Greater Hudson Bank, ("the Bank") (OTCQX: GHDS) the Hudson Valley's preeminent private bank for businesses, non-profits and municipalities has raised $9,195,000 in new capital. The capital was sourced in a private placement offering in which the Bank sold an additional 2,298,750 shares at $4.00 per share on June 21st.
"We are extremely pleased with the outcome of the raise," said Greater Hudson Bank President & CEO, Edward T. Lutz, who explained that the money raised came from Board Members, Senior Managers, Ambassadors and Clients. "Our business model of providing cutting edge technology combined with old fashion personal service has been well-received and the additional capital will allow us to continue on our growth trajectory. The new capital increases our legal lending limit, which allows us to meet the growing needs of our clients," Lutz said.
As a result of the raise, the Bank's capital increased 19.8% from $46.4 million to $55.6 million and increased their tier 1 capital ratio from 10.2% to 12.3%. In addition, the Bank's legal lending limit increased 18.6% from $7.4 million to $8.8 million.
"With a strong capital base, we are focused on continued expansion and delivering superior service for our clients and exceptional returns for our shareholders," explained Greater Hudson Bank Chairman, Kenneth J. Torsoe, who is the majority shareholder and lead investor during the Bank's 2008, recapitalization of the Community Bank of Orange. Mr. Torsoe further stated, "In just eight years, the Bank has grown from under $70 million in assets to over $400 million. The fact that our capital raising was so heavily oversubscribed illustrates the market's confidence in Bank's ability to continue to execute on our strategic plan."
Greater Hudson Bank, founded in 2002, is headquartered in Bardonia, NY. The Bank, which specializes in providing customized banking services to Hudson Valley based businesses, non-profits and municipal agencies is chartered by the New York State Department of Financial Services and its deposits are insured by the FDIC. As evidence of the Bank's financial strength, Greater Hudson Bank has been recognized with a superior rating by the country's leading independent bank rating and research firm, BauerFinancial, Inc. Further information can be found on the Bank's website at www.GreaterHudsonBank.com or by calling 844-GREAT-11.
Forward-Looking Statements: This Press Release may contain certain statements which are not historical facts or which concern the Bank's future operations or economic performance and which are to be considered forward-looking statements. Any such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Bank cautions that all forward-looking statements involve risk and uncertainties, and that actual results may differ from those indicated in the forward-looking statements as a result of various factors, such as changing economic and competitive conditions and other risk and uncertainties. In addition, any statements in this news release regarding historical stock price performance are not indicative of or guarantees of future price performance.