OSWEGO, N.Y., May 09, 2019 (GLOBE NEWSWIRE) — Pathfinder Bancorp, Inc. (“Pathfinder” or the “Company”) (NASDAQ: PBHC), the holding company for Pathfinder Bank (“Bank”), announced today that it has successfully closed a $20.8 million private placement of shares (“Shares”) of common stock and a newly issued series of convertible perpetual preferred stock (“Preferred Stock”) to local and institutional investors. The Shares were sold at $14.25 per share. An affiliate of Castle Creek Capital LLC (“Castle Creek”), a California-based private equity firm and a leading investor in the financial institutions sector, was the institutional investor in the offering. Accredited investors, members of the Board of Directors, and executive management of Pathfinder purchased $3.8 million of Pathfinder common stock in the transaction.
The Company intends to use the proceeds for general corporate purposes and to support future growth, which may include increased levels of lending activities and growing the branch network.
Thomas W. Schneider, President and Chief Executive Officer stated, “We are very pleased to announce the successful completion of our private placement. The new capital will be used to support organic growth opportunities in the communities we serve and enhance the value of our franchise.” Mr. Schneider added, “We are excited about the support of our local investors and the participation of Castle Creek Capital.”*
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*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.