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, the Oakland, California-based bank announced.

The bank plans to use proceeds to strengthen regulatory capital ratios and support organic growth and strategic expansion into new Bay Area markets. Gateway Bank operates offices in Oakland's Chinatown and Walnut Creek, serving individuals and businesses in the San Francisco Bay Area.

"This capital raise is a testament to the strength of our bank and the dedication of our Board of Directors, management and team members," stated James Keefe, Chairman of the Board. "Combined with Mukhtar Ali's leadership as our new President and CEO, it marks a pivotal moment for our organization."

President and CEO Mukhtar Ali said the capital raise 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 is a federally-chartered savings bank that began operations in June 1990. The information comes from a company press release.

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