Gateway Bank completes $16.1 million private placement

Gateway Bank, F.S.B. (OTCPK: GWBK) completed a private placement of $16.1 million in common stock to institutional and accredited investors, according to a company statement.

The Oakland, California-based federally chartered savings bank said it will use the proceeds to strengthen regulatory capital ratios and support expansion into new Bay Area markets.

"This capital raise is a testament to the strength of our bank and the dedication of our Board of Directors, management and team members," said James Keefe, Chairman of the Board.

Mukhtar Ali, President and CEO, said the funding positions the bank to accelerate growth initiatives. "Continued consolidation in the Bay Area banking space has created meaningful market dislocations, opening gaps that we are uniquely positioned to capture," Ali stated.

Janney Montgomery Scott LLC served as financial advisor and Godfrey & Kahn, S.C. acted as legal counsel for the private placement.

Gateway Bank operates from offices in Oakland's Chinatown and Walnut Creek, providing banking services to individuals and businesses in the San Francisco Bay Area. The bank began operations on June 8, 1990.

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