Looking to fuel its growth in both the Richmond region and North Carolina, a local bank has added a little extra cushion to its coffers.
Touchstone Bank, a $600 million institution headquartered in Prince George, last week completed a $10 million capital raise.
CEO James Black said the added capital will help the bank add talent and compete for more clients across its territory.
“It’s an opportunity for us to acquire capital at attractive levels. It also gives us additional capital to support our growth initiatives,” Black said.
The bank has 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.
But Black said it is particularly focused on growth around Richmond and in Raleigh, North Carolina, where he said continued consolidation among other community banks has left what he sees as an opening for banks the size of Touchstone.
“Our organization particularly this year has accelerated its growth in the Richmond MSA as well as Raleigh and North Raleigh,” Black said. “There’s an opportunity for us to acquire key talent and to grab clients and grow in those markets.”
Touchstone was created in 2018 through the merger of Prince George-based Bank of McKenney and Citizens Community Bank in South Hill. Black came over from the Citizens Community Bank side of the deal.
The bank was around $450 million in assets at the time of the merger and has grown since then to around $600 million.
This latest capital raise was completed Jan. 19 through a private placement of bonds that mature in 2032 paying a 4 percent rate for the first five years. It can redeem the notes beginning in 2027.
The bank was represented in the offering by investment banking firm D.A. Davidson & Co. and law firm Williams Mullen. Davidson was represented by law firm Troutman Pepper.
It’s the bank’s second capital raise since 2020, when it raised $8 million through a separate debt offering shortly after it created a holding company.
Black said the bank is focused more on adding employees in certain territories than it is on expanding its branch footprint. He also would not comment on whether the bank is eyeing any mergers or acquisitions, but did say “organic” growth is its focus at the moment.
The bank reported a profit of $3.2 million through the first three quarters of 2021. It has yet to announce its fourth quarter and year-end earnings.