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New Medford bank offers stock to raise capital

Artist's rendering of proposedbank building

Organizers of a new Medford-based bank have been authorized to issuestock and seek regulatory approval.

But the name has been changed from Community Bank of Commerce to People'sBank of Commerce. The state Division of Finance and Corporate Securitiescontended the original name was too similar to others, said Ken Trautman,president of the new bank.

Trautman and Mike Sickels, chief executive officer, will seek $3 millionto $4 million in a stock offering. Their original $3 million plan was nudgedupward by the state regulatory agency.

It will enable us to meet the needs of the community and grow alittle faster, Sickels said. We won't have to go back for additionalcapital.

The minimum investment would be $1,000 (100 shares at $10 each), Sickelssaid, and nobody would be allowed to buy more than 10 percent of the stock.The organizers are marketing the offering without going through an underwritingbrokerage.

A prospectus was prepared for printing this week. Details are availablefrom the organizers, who have temporary quarters at 10 Crater Lake Ave.,Suite 23. The telephone number is 776-5350.

The officers and directors have committed to purchasing at least 37.5percent of the offering.

Dean Collins, president of Cascade Wood Products Inc., has been addedto the board of directors.

Others include Bud Kaufman, president of Croman Corp.; Bob Kimmel, ownerof Bob Kimmel Trucking Co.; Maynard Hadley, recently retired owner of Dick'sTowing Inc. and a real estate investor; Bill Jacobs Jr., former presidentof Tash Inc., a $120 million sales service wholesaler; and Larry Horton,owner of Horton Plaza, Fountain Plaza and other retirement properties; andSickels.

S&B James Construction is building the bank office at the cornerof Biddle Road and Market Street. The bank will lease the first floor andpart of the second. The building is scheduled for completion Dec. 1.

Sickels anticipates approvals from the Federal Deposit Insurance Corp.by Dec. 1, coinciding with the completion of the branch and the offering.

Sickels was executive vice president and chief financial officer of WesternBank until last year when it was acquired by Washington Mutual Savings Bank.Trautman was formerly senior vice president and regional manager of WesternBank.

They see a demand for a Medford-based bank with local decision-makingauthority, Sickels said, but they're also responding to customer dissatisfactionwith big banks that have acquired Oregon institutions.

New Medford bank offers stock to raise capital