A small bank that operates in the region’s southern edges is going the holding company route.
Touchstone Bank, which was created two years ago through the merger of Prince George-based Bank of McKenney and Citizens Community Bank in South Hill, is creating a publicly traded holding company.
CEO James Black said it’s largely a procedural matter, but it will give the $468 million bank some wider latitude for things such as capital raises.
“It’s something strategically that we have had in our plan for quite a while,” Black said. “This just allows us to have greater flexibility for our corporate structure.”
The bank is closely held, but technically is publicly traded on the OTC Market. The new holding company, to be dubbed Touchstone Bankshares, would continue to trade on the same market under the same ticker symbol of TSBA.
The thinly traded stock closed last week at $8.45 per share after peaking at over $13 per share in February.
The process of setting up the holding company first must receive regulatory and shareholder approval, which would play out in the coming months.
Shareholders will continue to own their same shares going forward and won’t have to exchange any shares in the process.
Touchstone ended 2019 with $3.2 million in net income generated from its 13 branches
spanning the southern edges of the Richmond region and in South Hill, Gasburg and Boydton, as well as across the North Carolina border in Roanoke Rapids, Henderson and Louisburg.