02 Feb Founders Bank Closes $25 Million Capital Raise and Achieves Profitability in Quarter Ended December 31, 2022
Washington, D.C. – February 2, 2023 – Founders Bank is pleased to announce the successful completion of its previously announced capital raise, which was fully subscribed and resulted in the sale of 2,381,000 shares at a per share price of $10.50 for aggregate gross proceeds of $25.0 million, the maximum of the offering. The Bank also announced the milestone of reaching profitability for the quarter ended December 31, 2022.
The fundraising campaign, which was launched to support the Bank’s growth, attracted significant interest from the Bank’s existing shareholders who purchased shares in the Bank’s initial offering in 2020 as well as new investors throughout the greater Washington area. The fresh capital infusion of $25.0 million enables Founders Bank to increase its lending capacity and continue to invest in new products and services to better serve customers.
“We are delighted with the results of this capital raise and excited to expand our efforts to build stronger communities in the greater Washington area,” said Martin McCarthy, President, and CEO of Founders Bank. “The support we received from our existing and new investors, many of whom are already valued customers of the Bank, is a testament to the strength of our business model and our commitment to delivering value to our shareholders.”
With robust loan and deposit growth and an improving net interest margin, the Bank achieved profitability in the fourth quarter of 2022. “This milestone is a direct result of the efforts of our dedicated Board of Directors, executive management team and all employees,” said McCarthy. “We believe we are now well-positioned for the next growth phase of the Bank’s evolution and to continue to serve the needs of our customers, by filling the void left by the consolidation of community banks in the greater Washington area over the last 12 years.”
Headquartered in Washington, DC, Founders Bank is a full-service commercial bank founded in 2020 serving businesses, organizations and the professionals who run them throughout the greater Washington, DC metropolitan area. The Bank offers commercial and consumer loans, a full complement of deposit products, treasury management, and online/mobile banking solutions.