Business Bank raises capital to meet FDIC requirements

The Bellingham Business Journal

Business Bank, a community bank headquartered in Burlington, recently reached its initial goal of raising $2.5 million as part of its overall capital investment campaign to raise $8 million in new capital.

The bank was issued a cease and desist order in September 2009 ordering the bank to raise new capital and deal with bad assets on its books. The initial goal of $2.5 million was reached on Dec. 17 and the current offering at $1.60 per share has been extended until Jan. 17, 2011.

“Our shareholders and the community have given us tremendous support during this process,” bank President and CEO Michal Cann said in a news release. “Over 200 investors have invested in our campaign thus far and every indication is that many more will join us in our efforts in the coming weeks. The success in our capital campaign is extremely encouraging.”

Much of this first round of stock offerings was bought by existing shareholders, which shows they have confidence in the bank, Cann said in an interview. Not only that, but the bank has received interest from other buyers willing to invest about another $1 million, which would help the bank reach its long-term goal of $8 million in new capital.

“I think we’ll have an easier time getting the remaining amount,” Cann said.

Business Bank has about $85 million in total assets and has three branches with one in Bellingham and the other two in Skagit County. For more information, visit www.businessbankwa.com.

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