IMCB attracts $70 million in capital deal

SANDPOINT — Intermountain Community Bank announced Wednesday that it has attracted $70 million as part of a securities purchase agreement.

ICB is the parent company of Panhandle State Bank.

“As a leading community bank in our region, our goals are to be a strong resource for our communities, to retain and build on our successful relationship-based banking model, and to position our bank for challenges and opportunities ahead,” said company chief executive officer Curt Hecker.

The agreement is with Castle Creek Fund IV, affiliates of Stadium Capital Management, LLC, and certain other accredited investors.

The transaction is subject to back regulatory approvals and confirmations through the purchase of 70 million shares of bank common stock at $1 per share.

The bank also plans to offer $5 million in common shares to existing shareholders at the same price as the investment companies. Certain investors have agreed, subject to regulatory limitations, to purchase shares any existing shareholders do not purchase in the offering.

The bank expects to use the proceeds from the offering to make capital contributions and to strengthen the balance sheet of the bank, according to a press release.

“As a leading community bank in our region, our goals are to be a strong resource for our communities, to retain and build on our successful relationship-based banking model and to position our bank for the challenges and opportunities ahead,” Hecker wrote. “This investment represents and important step forward, putting a strong foundation under our plans for the future.”

Hecker was also pleased that current shareholders have an opportunity to buy additional shares.

Total  common shares to be issued will represent approximately 90 percent of the outstanding common stock.

“We are pleased that firms the caliber of Castle Creek, Stadium and other investors share our belief in the underlying strength of Intermountain and its subsidiary, Panhandle State Bank,” Hecker wrote.

The bank expects the transaction to close in April or May.

Intermountain is headquartered in Sandpoint and operates as four separate divisions with 19 banking locations in three states.

The complete press release is available online and will be attached to this story at bonnercountydailybee.com.