This month we’re pleased to celebrate the 5-year anniversary of the successful launch of OTCQX for Banks.  In May 2014, and with ten founding member banks at inception, OTCQX Banks was created to provide U.S. regional and community banks the opportunity to communicate their value proposition through a more cost-effective alternative. OTCQX Banks’ comprise some of the most established institutions, leveraging the OTCQX Market to provide the benefit of the public markets to their investors without the cost and complexity associated with trading on a traditional exchange. 

We spoke with two of the founding member banks as we mark the 5th anniversary of being publicly traded to gain perspective on how OTCQX Market has helped complement their investor relations strategy and fuel long-term growth:

“Following SEC de-registration in the fall of 2013, Calvin B. Taylor Bankshares, Inc. was looking for another reputable index through which we could deliver our message to existing and prospective stockholders.  As a Founding Member of the OTCQX, we have benefitted from reduced expense, increased market visibility and a credible trading platform.  Joining the OTCQX Market was a great decision for our company, and we enjoy our affiliation with the high-performing financial institutions that have become members since its inception.”

— Raymond Thompson, President & Chief Executive Officer
 Calvin B. Taylor Bankshares, Inc.

 

 “Katahdin Bankshares Corp. is pleased to be a founding member of the OTCQX Banks,” said Jon Prescott, President & CEO. “The platform has increased our exposure to potential investors, providing areas of liquidity for shareholders wishing to move small to medium-sized allotments of shares in a reasonable amount of time. An important advantage that the OTCQX Market has brought to our company is compliance with Blue Sky laws in most states. In addition, while we are not an SEC registered company, the added reporting transparency required by OTC Markets has been beneficial for our company.”

— Matt Nightingdale, Executive Vice President, Treasurer & CFO
 Katahdin Bankshares Corp. 

The banking sector continues to play an important role in  U.S. economy. Presently, there are 90 community banks trading on the OTCQX Market with a combined $70 Billion+ in total assets, hailing from 30 U.S. states, with asset sizes ranging from $100mm to over $4B.  These institutions share a commitment to providing investors with transparent disclosure and efficient trading for their shareholders.  To better serve the needs of our bank issuers, OTC Markets Group recently acquired QaravanSM – a leading provider of innovative risk & performance analytics tailored to bank executives, regulators, and analysts.  This offering reflects our commitment to provide community banks with innovative and accessible industry solutions.

We look forward to what lies ahead in the next five years and to continuing to create tailored offerings for community banks to help them achieve their capital markets goals.