Security Bank Holding Co. is seeking to raise $2.65 million from a common stock offering to replenish capital invested in a start-up bank 100 miles away.
Under a January agreement, Security injected $2.1 million in capital to help start Lincoln Security Bank, which opened May 30 in Newport, Ore. Security also agreed to provide administrative and operational support for a fee.
The planned offering is designed to help Security to expand or to repay some debt connected with its employee stock ownership plan.
Because Security bought all of Lincoln's class B stock, it controls most of the new bank's stock and can elect most of its directors. Security plans to let Lincoln remain independent, however, as long as performance is satisfactory.
Local investors, who provided the rest of Lincoln's $3 million in capital, have the option of purchasing the stock back from Security during five years beginning May 30, 2001.