IDAHO FALLS, Idaho—Bank of Idaho Holding Co., the parent company of Bank of Idaho, has announced that it has completed a $15 million private placement of its capital stock.
The investor in the private placement is an affiliate of Castle Creek Capital LLC, an institutional investor that specializes in the community banking sector. Proceeds from the private placement will be used to facilitate strategic initiatives and support the company’s organic growth and market expansion activities throughout Idaho.
While Castle Creek will join the company’s shareholder base, the existing management team and board of directors will continue to lead the bank.
“This is a momentous day for Bank of Idaho,” Jeff Newgard, president and CEO of Bank of Idaho, said in a statement. “We are excited to see the opportunities these resources will bring us as we strive to further differentiate ourselves as the preferred financial institution for small business banking throughout the state. We’re excited to partner with Castle Creek. They understand the role community banks play in the economy, and they will provide valuable expertise, support and resources to help us achieve our goals for growth and expansion in the future."*
“As a result of this capital raise, we have significantly strengthened our balance sheet to support the next stage of our company’s strategic initiatives. This represents a solid vote of confidence for our strategic plan, as we continue on a path to providing a truly unique and personal banking experience for our small business clients across the state.”
*The statement quoted above was made by an executive of a Castle Creek portfolio company.
The portfolio company executive has not received compensation for the above statement and this statement is solely his opinion and representative of his experience with Castle Creek. Other portfolio company executives may not necessarily share the same view. An executive in a Castle Creek portfolio company may have an incentive to make a statement that portrays Castle Creek in a positive light as a result of the executive's ongoing relationship with Castle Creek and any influence that Castle Creek may have or had over the governance of the portfolio company and the compensation of its executives. It should not be assumed that Castle Creek's investment in the referenced portfolio company has been or will ultimately be profitable.