Spokane-based RiverBank Holding Co. has accepted $2.9 million from a fully subscribed private-placement offering, which it says will strengthen the bank’s capital position while supporting its growth strategy. 

Daniel Byrne, RiverBank CEO, says he appreciates the support and confidence shown by investors and others during the offering. 

“Our investors see the value being created by our mobile branching and e-banking strategies and the opportunities for a local community bank to meet the banking needs of business customers in Eastern Washington,” says Byrne. He had been longtime chief financial officer at Sterling Financial Corp. before coming out of retirement to become CEO at RiverBank last year.

He took over the position formerly held by Clyde B. “Chuck” Brooks Jr., who died in 2013 after a brief battle with cancer.

In its recent offering, RiverBank sold 750,000 shares of common stock at a price of $4 per share to accredited investors, Byrne says, including the bank’s board of directors, management, and new investors.

The new infusion of capital will be used for continued growth in lending. 

“It will allow us to increase the overall size of the bank to about $150 million in total assets, emphasizing growth in commercial business lending and small business loans,” he says. 

RiverBank reports it had total assets of about $109 million as of March 31. It reported net income of $111,000 for 2013, finally regaining profitability following losses of $3.9 million in 2012, $686,000 in 2011, and $2.8 million in 2010. 

As of July 1, Byrne reports RiverBank has about 1,387 deposit accounts and about 325 loan accounts.

Byrne says RiverBank is also focusing on niche lending. 

“We’ve hired Ron DeRoche as a senior vice president of lending who will help us particularly in medical and agricultural lending,” he says. DeRoche hails from Eastern Washington and has worked for a number of different banks, Byrne says. 

RiverBank, a wholly-owned subsidiary of RiverBank Holding Company, was founded in 2006 offering a single location model and concierge services. 

Byrne says clients have responded positively to its new services, which include mobile banking. 

“It allows people to do banking through their mobile phones or tablets,” he says.  

In August 2011, RiverBank entered into a consent order with the Federal Deposit Insurance Corp., and the Washington state Department of Financial Institutions that placed it under tighter regulatory scrutiny. The order required RiverBank to hire and retain qualified managers, notify regulators when it planned to add or replace board members or senior executive officers and increase the board’s participation in bank affairs. It was also required to increase its capital, keep a fully funded allowance for loan or lease losses, reduce troubled assets, and develop a financial plan that set specific goals in several areas. 

The consent order was lifted earlier this year.

Byrne says the bank had been stable ending 2013, with total deposits of $92.2 million, net loans of $79.2 million, and total assets of $103.5 million. 

The bank, which has 32 employees, occupies most of the top two floors of a five-story building at 202 E. Spokane Falls Blvd., plus has a ground floor branch there.