NEWS - Banking & Finance

The sad news on the closing of First National Bank by the FDIC created opportunity for another local bank, The Savannah Bancorp, Inc. (Nasdaq:SAVB).

In June the bank holding company completed its public offering of 1,263,157 shares of common stock at $9.50 per share. The Company received net proceeds of approximately $11.3 million after deducting underwriting discounts and expenses.

The net proceeds will be used for working capital and general corporate purposes, including to fund an earn-out payment in regard to the bank’s 2007 acquisition of Minis & Co., Inc., to support organic growth and “potential future acquisitions of branches or whole banks in or adjacent to our existing footprint, which may include the possible acquisition of failed institutions in FDIC-assisted transactions and to provide additional capital to the Banks,” the bank said in an SEC filing just weeks before the news that the bank had purchased the assets of First National.

“Raising capital is always gratifying as shareholders are showing their confidence in our Company.  We are particularly pleased with the strong participation by our insiders and existing shareholders.  The success of this offering, which was significantly over-subscribed, speaks to the Board of Directors and management’s historical stewardship of our capital and the Company’s opportunities,” said John Helmken II, President and CEO.

The Savannah Bancorp, Inc. is the bank holding company for The Savannah Bank, N.A., Bryan Bank & Trust (Richmond Hill, Georgia), and Minis & Co., Inc., and is headquartered in Savannah. SAVB has ten branches in Coastal Georgia and South Carolina.