Name: CapitalMark Bank & Trust
Current offices: Chattanooga, Knoxville
Summer additions: Oak Ridge, Cleveland, Tenn.
Assets: $710 million
2011 earnings: $3.4 million
Equity: $81.5 million after the stock offering
Staff: 84 employees
CEO: R. Craig Holley
Outstanding stock: After the issue, CapitalMark will have nearly 7.6 million common shares and 18.2 million preferred shares
For the third time in its 6-year history, CapitalMark Bank and Trust is selling stock to further its growth.
The Chattanooga-based bank, which raised $35 million in the biggest stock offering of its type for a new Tennessee bank in 2006 and then sold more than $7 million of additional stock in 2008, announced plans Tuesday to sell another $10 million of common shares this summer. CapitalMark is planning to issue 800,000 shares at an offering price of $12.50 per share, starting next Monday.
"Our financial performance and the strength of our balance sheet underscore our ability to execute on a highly successful and efficient model," CapitalMark CEO R. Craig Holley said in a statement Tuesday. "As our industry emerges from a historically challenging banking climate, the compelling CapitalMark story and successful track record are deemed a bright spot for current shareholders and potential investors."
Since the bank opened in March 2007, CapitalMark has grown to include more than $620 million in deposits and $710 million in assets with only two offices. CapitalMark has one office each in Chattanooga and Knoxville, but the facilities are supported by online and mobile carrier services.
CapitalMark is renovating former bank offices in both Oak Ridge and Cleveland, Tenn., to open other branches this summer.
CapitalMark was among 170 U.S. banks which opened just prior to the banking crisis of 2008 and were charted in 2007. Less than 140 of those banks remain today.
Among its peers, CapitalMark ranked No. 5 in assets and No. 8 in net income. CapitalMark targets businesses, their owners and key personnel, professionals and their families with everything from commercial banking and mortgage lending to treasury management and trust and wealth management.
"As the bank focuses efforts in markets traditionally dominated by large, regional banks, we are optimistic that through our targeted and customized approach, there is continued opportunity for a bank to gain market share," CapitalMark said in its 105-page stock solicitation.
CapitalMark is taking advantage of the new Exchange Act, which allows banks with fewer than 1,200 shareholders to avoid many of the reporting requirements for other publicly traded companies.
CapitalMark has more than 600 shareholders and regularly reports quarterly results. But under the new law CapitalMark's director of investor services, Stefanie Crowe, said the filing requirements "will be substantially reduced."
Contact Dave Flessner at email@example.com or at 757-6340.