Gateway Bank Completes $16.1M Common Share Sale

New capital will boost regulatory ratios and fund Bay Area expansion after private placement with institutional investors.

Published on Feb. 3, 2026

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Gateway Bank, F.S.B., a federally-chartered savings bank headquartered in Oakland, California, has successfully completed a $16.1 million private placement of its common stock to certain institutional and accredited investors. The proceeds will be used to strengthen the bank's regulatory capital ratios and support both organic growth and strategic expansion into new Bay Area markets.

Why it matters

The capital raise is seen as a pivotal moment for Gateway Bank, providing resources to deepen customer relationships, expand into additional communities, and drive shareholder returns. It comes as the Bay Area banking space sees continued consolidation, creating market dislocations that Gateway Bank believes it is uniquely positioned to capture.

The details

The private placement was led by Janney Montgomery Scott LLC as financial advisor, with Godfrey & Kahn, S.C. acting as the bank's legal counsel. Gateway Bank's new President and CEO, Mukhtar Ali, stated that the funds will allow the bank to accelerate its growth initiatives while staying focused on its customers. The bank plans to strategically deploy the capital to take advantage of opportunities created by market consolidation in the Bay Area.

  • Gateway Bank completed the $16.1 million private placement on February 3, 2026.

The players

Gateway Bank, F.S.B.

A federally-chartered savings bank headquartered in Oakland, California that began operations in 1990 and offers banking services to individuals and businesses in the San Francisco Bay Area.

Mukhtar Ali

The new President and CEO of Gateway Bank, F.S.B.

James Keefe

The Chairman of the Board of Directors for Gateway Bank, F.S.B.

Janney Montgomery Scott LLC

The financial advisor that led the $16.1 million private placement for Gateway Bank, F.S.B.

Godfrey & Kahn, S.C.

The law firm that acted as legal counsel for Gateway Bank, F.S.B. in the private placement.

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What they’re saying

“This capital raise is a testament to the strength of our bank and the dedication of our Board of Directors, management and team members. 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.”

— James Keefe, Chairman of the Board (stocktitan.net)

“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.”

— Mukhtar Ali, President and CEO (stocktitan.net)

What’s next

Gateway Bank plans to strategically deploy the $16.1 million in new capital to accelerate its growth initiatives and expand its presence in the Bay Area banking market.

The takeaway

Gateway Bank's successful $16.1 million private placement underscores the strength of the bank and positions it to capitalize on market dislocations in the consolidating Bay Area banking landscape. The new capital will allow the bank to deepen customer relationships, expand into additional communities, and drive sustainable value creation as it works to become a leading community bank in the region.