SEATTLE, WA—Fortune Bank announced today that it is seeking the approval of its shareholders for an amendment and restatement of its Articles of Incorporation as part of a proposed capital raise.  In order to enable the Bank to proceed with the capital raise, the proposed amendment would, among other things, increase the authorized number of shares of common stock from 10 million to 250 million.  The proposed amendment also includes certain other provisions that are typical for a publicly traded company.

The Bank anticipates seeking to raise additional capital of at least $450,000,000.  The Bank’s capital raising efforts are subject to market conditions and a number of other conditions, including the approval of certain regulatory filings by the Federal Deposit Insurance Corporation and the Washington Department of Financial Institutions.  In addition to raising funds to finance the Bank’s organic growth and to make potential FDIC-assisted and unassisted acquisitions and for general corporate purposes, the other purpose of the capital raise is to unite the Fortune Bank management team and a team of experienced senior bankers headed by Martin Glynn of Vancouver, British Columbia, who would become the Chief Executive Officer following completion of the capital raise, with David Straus, Fortune Bank’s current President and Chief Executive Officer serving as the Chief Operating Officer.  A nationally recognized investment bank is expected to lead the Bank’s capital raising efforts.  The proposed capital raise will be made solely by means of an offering circular. 

About Fortune Bank

Fortune Bank was founded in 2006 and is privately held with approximately 300 shareholders and 27 employees.  At December 31, 2009, deposits totaled approximately $103 million and loans totaled approximately $83.6 million.  It had tangible common equity at year-end of $14.8 million.

This press release is not an offer to sell or the solicitation of an offer to buy any securities described in this press release.