People’s Bank of Commerce in Medford, Ore., is one step closer to forming a holding company.
Shareholders of the $808 million-asset bank voted on May 19 to create PBCO Financial. People’s Bank would become a PBCO subsidiary.
“The bank has considered the formation of a bank holding company for several years,” Ken Trautman, People’s Bank’s CEO, said in a Wednesday press release.
“In light of the recent merger with Williamette Community Bank and asset growth achieved over the past year, the bank holding company will provide … additional growth opportunities and provide for alternatives in management of bank operations,” Trautman said.
People’s Bank, which bought Williamette Community in March, said it is working on its application with the Federal Reserve in hopes of securing approval early in the third quarter.
Shareholders also approved a plan to increase the bank’s authorized common stock from 6 million shares to 10 million.
The bank had exhausted more than half of its authorized shares as part of the Williamette Community acquisition, which would have limited its ability to consider stock dividends and other strategic initiatives.