Market Overview

Bank of Bird-in-Hand Reports on Progress of Stock Offering


The Bank of Bird-in-Hand (the "Bank") announced that, as of October 2, 2020, it has received and accepted subscriptions for 789,473 shares of its common stock for aggregate gross proceeds of $15,000,000, before deducting offering expenses, through the previously announced stock offering of its shares of common stock. Due to the overwhelming demand, the Board of Directors has approved the increase in the offering amount to a maximum of approximately $20 million up from $15 million.

The Bank commenced the common stock offering on September 14, 2020, at $19.00 per share, of up to approximately $15 million of common stock with the right to increase the offering amount up to approximately $20 million, at the sole discretion of the Board of Directors in the event that demand for the shares exceeded $15 million. The Bank is raising the capital from shareholders, retail investors, and the community.

Kevin J. McClarigan, Chairman of the Board, stated, "We are excited and humbled by the strong demand we have experienced for our latest common stock offering. We believe that this overwhelmingly positive response expresses the solid faith of our shareholders and community in our Board, management team and the long-term future of the Bank."

The net proceeds of the common stock offering will be used for general bank purposes to support the Bank's growth including, but not limited to, continuing to meet regulatory capital requirements, increasing capital to support lending and deposit activities, increasing per borrower legal lending limits, and planning for the long-term future of the Bank, including additional, yet currently unidentified, fixed and mobile branch locations.

The common stock offering will terminate at 11:59 p.m. local prevailing time in Bird-in-Hand, Pennsylvania on December 31, 2020, unless extended by the Bank for an additional period not to exceed 90 days therefrom. The Bank reserves the right, however, to withdraw or terminate the Offering at any time and return subscriptions to subscribers.

Offering materials are available at the Bank or by contacting Denise M. Rautzhan, Senior Vice President and Chief Financial Officer, Bank of Bird-in-Hand, 309 North Ronks Road, Bird-in-Hand, Pennsylvania 17505.


About Bank of Bird-in-Hand

Bank of Bird-in-Hand is a community-owned bank serving Lancaster County and western Chester County with a strong focus on agricultural, small business, and consumer lending. Its main branch and office is located at 309 North Ronks Road, Bird-in-Hand, PA 17505. It operates additional branches at 3540 Old Philadelphia Pike, Intercourse, PA 17534 and 3314 Lincoln Highway East, Paradise, PA 17562. The Bank also operates a mobile branch which has a schedule of hours of operation at nine locations in Lancaster County. In addition, the Bank is putting two additional mobile bank branches in service on Monday October 5, 2020, which will serve six more locations in Lancaster and Chester counties.

As of June 30, 2020, Bank of Bird-in-Hand had total assets of $527.5 million, total deposits of $453.2 million, total net loans of $425.0 million, and total shareholders' equity of $57.8 million.

A Warning About Forward-Looking Statements

In addition to historical information, this document may contain forward-looking statements. Examples of forward-looking statements include, but are not limited to, (a) projections or statements regarding future earnings, expenses, net interest income, other income, earnings or loss per share, asset mix and quality, growth prospects, capital structure, and other financial terms, (b) statements of plans and objectives of management or the Board of Directors, and (c) statements of assumptions, such as economic conditions in the Bank's market areas. Such forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "intends," "will," "should," "anticipates," or the negative of any of the foregoing or other variations thereon or comparable terminology, or by discussion of strategy. Forward-looking statements are subject to certain risks and uncertainties such as local economic conditions, competitive factors, and regulatory limitations. Actual results may differ materially from those projected in the forward-looking statements. We caution readers not to place undue reliance on these forward-looking statements. They only reflect management's analysis as of this date. Such risks, uncertainties and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: the effects of economic conditions particularly with regard to the negative impact of severe, wide-ranging and ongoing disruptions caused by the spread of and governmental responses to the coronavirus disease (COVID-19) on current operations and customers, specifically the effect of the economy on loan customers' ability to repay loans; the effects of new laws and regulations, including the impact of the Tax Cut and Jobs Act and Dodd-Frank Wall Street Reform and Consumer Protection Act; effects of short- and long-term federal budget and tax negotiations and their effect on economic and business conditions; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market area and elsewhere, including institutions operating locally, regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the internet; technological changes; the interruption or breach in security of our information systems and other technological risks and attacks resulting in failures or disruptions in customer account management, general ledger processing and loan or deposit updates and potential impacts resulting therefrom including additional costs, reputational damage, regulatory penalties, and financial losses; ineffectiveness of the business strategy due to changes in current or future market conditions; the effects of competition, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products and services; interest rate movements; difficulties in integrating distinct business operations, including information technology difficulties; disruption related to the processing of transactions, making it more difficult to maintain relationships with customers and employees , and challenges in establishing and maintaining operations in new markets; volatilities in the securities markets; slow economic conditions; and acts of war or terrorism. The Bank does not revise or update these forward-looking statements to reflect events or changed circumstances.

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