Independent Alliance Banks Inc., the holding company of iAB Financial Bank, has received approval to conduct an offering of up to 200,000 shares of common stock, officials announced today. Raymond James & Associates is acting as sales agent.
The Indiana Securities Division and the Financial Industry Regulatory Authority approved the plan, which will expand the Fort Wayne-based company’s shareholder base and raise additional capital for the bank.
Like many small financial institutions, iAB had previously tried to limit its shareholder numbers to stay below a Securities and Exchange Commission threshold for requiring more detailed reporting. The SEC had since increased the cutoff number to 2,000 shareholders from 500.
The intrastate offering is being made to only legal residents of Indiana. Expanding the sale to residents of additional states requires an SEC filing that requires more paperwork and expense than the bank wanted to commit to the project, said Karen Cameron, iAB’s executive vice president for corporate services.