Parkway Bancorp Inc., the holding company for Parkway Bank, a commercial bank in Chicago serving businesses, families, and communities, has announced the completion of a private placement of its common stock.
The placement was co-led by investment funds managed by Patriot Financial Partners and Stone Point Capital, generating nearly $350 million of gross proceeds.
Parkway Bank, founded in 1964, used the majority of the proceeds to complete a private tender offer to repurchase shares of Parkway stock from existing stockholders, with the remaining proceeds to be retained by Parkway for general corporate purposes.
The transaction positions Parkway for long-term growth while reinforcing its commitment to helping businesses across Chicago and the Midwest grow and succeed.
Led by a new executive team with deep commercial banking experience, Parkway will use the additional capital to strengthen its banking platform, enhance technology, attract experienced bankers, and expand its ability to serve small and middle-market businesses.
As part of the transaction, David Provost has been named executive chair, Dennis Klaeser has been named executive vice chair, and Chip Reeves has been named president and CEO.
Together, the three executives bring decades of experience leading and growing some of the Midwest’s most successful commercial banking organizations, with proven track records building high-performing banking teams, executing strategic growth initiatives, and serving middle-market businesses.
“Parkway has built an exceptional institution with deep roots in one of the country’s strongest commercial banking markets,” says Kirk Wycoff, managing partner of Patriot Financial Partners. “We believe the combination of Parkway’s reputation, experienced leadership, and significant new capital creates a compelling opportunity for long-term growth.”
Provost, former CEO of Detroit-based Talmer Bancorp, says the new leadership team “brings the experience, talent, and discipline needed to build a stronger commercial banking platform. The opportunity is to honor what Parkway has built while bringing the scale, expertise, and execution needed to grow across Chicago and the Midwest.”
“Parkway has a tremendous foundation, a talented team and deep relationships across Chicagoland,” says Reeves. “Our responsibility is to significantly build on that foundation. With this leadership team in place, additional capital, and a clear focus on growth, we have an opportunity to attract outstanding talent, expand our commercial banking capabilities, and serve more businesses across Chicago and the Midwest.
“We’ve invested alongside our partners because we believe in Parkway’s future. We’re owners, not just operators. Our success is tied directly to the success of our customers, employees and communities, and that alignment will guide the kind of bank we are building.”
The announcement marks the first step in Parkway’s long-term growth strategy. Over the coming weeks, Parkway expects to continue building its executive leadership team and introduce strategic initiatives designed to support customers, employees, and communities throughout Chicago and the Midwest.
Keefe, Bruyette & Woods, a Stifel Company, acted as financial advisor to Parkway on the transaction and as sole Placement Agent with respect to the private placement.
Hovde Group provided an independent fairness opinion to the Parkway board of directors, Alston & Bird acted as legal counsel to Patriot Financial Partners, and Simpson Thacher & Bartlett acted as legal counsel to Stone Point.
Kirkland & Ellis and Barack Ferrazzano Kirschbaum Nagelberg acted as legal counsel for Parkway. Squire Patton Boggs (US) acted as placement agent counsel to Keefe, Bruyette & Woods.
Through its network of banking centers across Chicagoland, Parkway provides commercial banking, commercial real estate lending, treasury management, consumer banking, and wealth management services through a relationship-focused approach.
Provost was previously vice chairman of TCF Financial Corp. Prior to that, he served as president and CEO of CHFC, the holding company for Chemical Bank in Midland.
Prior to this role, Provost was CEO and chairman of Talmer Bank and Trust, which merged with Chemical Bank. Under his leadership, Talmer Bank and Trust and its predecessor, First Michigan Bank, was the fastest growing bank in the country from 2010 to 2015, completing nine bank acquisitions.
Previously, Provost established two banks, The Bank of Bloomfield Hills and The Bank of Rochester, which he combined and sold to PrivateBancorp in 2005.
For more information about Parkway Bank, visit parkwaybank.com.
