Austin-area bank raises $12M in share sale, eyes acquisitions

Jul 7, 2014
Austin Business Journal

Pioneer Bancshares Inc., the parent company of Dripping Springs-base Pioneer Bank SSB, has closed a $12 million private placement of common shares that the company said will be used for funding loan growth and possible future bank acquisitions

Pioneer sold 665,928 shares at $18 per share, after boosting the number of shares in the original offering in late March by 105,928 shares due to strong demand, bank officials said in a statement

After the offering was launched earlier this year, Jeff Wilkinson, Pioneer Bank president and CEO, told Austin Business Journal that the bank was concentrating on both organic growth and making strategic acquisition deals

"The success of this offering further proves the need for a strong and local community bank in Austin and Central Texas," Wilkinson said in the statement issued Thursday

From January to June, Pioneer Bank grew its assets by 31 percent, from $262 million to $344 million, through organic growth and the February acquisition of Union State Bank in Kerrville, Texas

Prior to the acquisition, Pioneer was ranked as the sixth-largest bank with Austin-area headquarters, according to the 2014 Austin Business Journal Book of Lists

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