Gateway Bank, F.S.B. Announces Completion of $16.1 Million Private Placement of Common Shares

Rhea-AI Summary

Gateway Bank (OTCPK: GWBK) completed a $16.1 million private placement of common stock on February 3, 2026 to institutional and accredited investors. Proceeds will be used to strengthen regulatory capital ratios and to support organic growth and strategic Bay Area expansion.

Management said the raise, combined with Mukhtar Ali as President and CEO, positions the bank to deepen customer relationships, expand into additional Bay Area communities, and improve profitability. Janney Montgomery Scott acted as financial advisor and Godfrey & Kahn served as legal counsel.

Positive

• $16.1 million raised via private placement
• Proceeds aimed to strengthen regulatory capital ratios
• Funding supports organic growth and Bay Area expansion
• Mukhtar Ali installed as new President and CEO

Negative

• Issuance of common stock will dilute existing shareholders
• No disclosure of dilution percentage or post-offering ownership structure

News Market Reaction

+16.91%

1 alert

+16.91% News Effect

On the day this news was published, GWBK gained 16.91%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

OAKLAND, Calif., Feb. 03, 2026 (GLOBE NEWSWIRE) -- Gateway Bank, F.S.B. (OTCPK: GWBK) (“the Bank”) today announced the successful completion of a private placement of $16.1 million of the Bank’s common stock to certain institutional and accredited investors. Proceeds will be deployed to strengthen regulatory capital ratios while also supporting both organic growth and strategic expansion into new markets across the Bay Area.

“This capital raise is a testament to the strength of our bank and the dedication of our Board of Directors, management and team members,” stated James Keefe, Chairman of the Board. "Combined with Mukhtar Ali's leadership as our new President and CEO, it marks a pivotal moment for our organization. We are well positioned to deepen our customer relationships, expand into additional Bay Area communities, and drive shareholder returns."

Mukhtar Ali, President and CEO added, “The completion of this capital raise positions Gateway Bank to accelerate our growth initiatives while staying anchored to what matters most — our customers. Continued consolidation in the Bay Area banking space has created meaningful market dislocations, opening gaps that we are uniquely positioned to capture. We see a compelling opportunity ahead, and strategic deployment of these funds will let us move decisively into those gaps, driving sustainable value creation and stronger financial performance over the coming years. We're committed to improving our profitability, and our talented team is determined to position Gateway Bank into a leading community bank in the Bay Area."

Janney Montgomery Scott LLC acted as financial advisor and Godfrey & Kahn, S.C. acted as the Bank’s legal counsel in the private placement.

About Gateway Bank, F.S.B. Gateway Bank is a Federally-chartered savings bank headquartered in Oakland, California and began operations on June 8, 1990. The Bank currently operates out of its offices located in Oakland’s Chinatown and Walnut Creek, and offers banking services to individuals and businesses in the San Francisco Bay Area.

Contacts

Mukhtar Ali
(510) 813-8582
Mukhtar.Ali@gatewayfsb.com

FAQ

How much capital did Gateway Bank (GWBK) raise in the February 3, 2026 private placement?

Gateway Bank raised $16.1 million in a private placement to institutional and accredited investors. According to the company, proceeds will strengthen regulatory capital ratios and support organic growth and strategic Bay Area expansion over the coming years.

What will Gateway Bank (GWBK) use the $16.1M raised on February 3, 2026 for?

The funds will be used to strengthen regulatory capital ratios and support growth initiatives. According to the company, proceeds will also back organic expansion and strategic entry into additional Bay Area communities to deepen customer relationships.

Does the Gateway Bank (GWBK) private placement on Feb 3, 2026 change leadership at the bank?

Yes; the announcement highlights Mukhtar Ali as the bank's new President and CEO. According to the company, combining the capital raise with new leadership is positioned to accelerate growth and improve profitability.

Will the $16.1M private placement for Gateway Bank (GWBK) dilute current shareholders?

Yes, issuing new common stock will cause dilution to existing shareholders. According to the company, the placement was sold to institutional and accredited investors, but no post-offering ownership percentages were disclosed.

Who advised Gateway Bank (GWBK) on the $16.1M private placement announced Feb 3, 2026?

Janney Montgomery Scott acted as the financial advisor and Godfrey & Kahn served as legal counsel. According to the company, both firms supported the bank through the private placement to institutional and accredited investors.