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DCB Financial Corp. in Lewis Center, Ohio, is planning to raise fresh capital by issuing more stock to existing and prospective shareholders.
February 6 -
After more than a year without a permanent leader, DCB Financial Corp in Lewis Center, Ohio, has named a former Huntington Bancshares Inc. executive, Ronald J. Seiffert, president and chief executive.
September 30
DCB Financial Corp. (DCBF) in Lewis Center, Ohio, has raised fresh capital.
The $494 million-asset parent of Delaware County Bank & Trust said Thursday it completed a sale of common stock to existing shareholders and local investors that netted $13.2 million in funds.
The money will enable DCB Financial to satisfy capital ratios required by regulators and to fund growth, the company said in a filing with the Securities Exchange Commission.
"Despite the tough economic climate, both our existing shareholders and the local new investors who participated in this offering see the potential and enthusiasm surrounding our company," Ronald Seiffert, DCB Financial's chief executive officer, said in a news release. "With this infusion of capital we are positioned to satisfy the regulatory capital requirements and have the ability and flexibility to execute on future growth opportunities."
The rights offering comes roughly two years after Delaware County Bank entered into an agreement with the Federal Deposit Insurance Corp. that requires the bank to achieve a Tier 1 capital ratio of 9% and a total risk-based capital ratio of 13%. As of Sept. 30, the bank had a Tier 1 ratio of 8.98% and a total risk-based capital ratio of 10.19%.
The company announced the rights offering on Oct. 16. The offering gave shareholders of record as of Aug. 29 the right to purchase one share of the company's common stock at a price of $3.80 a share for every three shares they owned on the record date.
DCB's share price was up slightly, to $4.08, in early trading Friday.
Seiffert, a former vice chairman of Huntington Bancshares,
DCB Financial recorded net income of $306,000 in the third quarter, up 10.8% from the same period a year earlier. Sandler O'Neill, Broadridge Financial and the law firm of Vorys, Sater, Seymour and Pease advised the company in connection with the capital raise.
