Legacy Bank holding company completes $99M capital raise through Treasury

Ozarks Heritage Financial Group Inc., the holding company for Springfield-based Legacy Bank and Trust Co., completed a $99 million capital raise through the U.S. Treasury Department.

The Treasury investment, comprising noncumulative senior perpetual preferred stock through its Emergency Capital Investment Program, is designed to support low- and middle-income communities, along with disadvantaged businesses, according to a news release.

“The addition of $99 million in capital more than doubles our current capital levels and will allow us to expand our services across a wider path of underserved areas that are currently difficult for us to reach due to capital restraints,” Legacy Bank Chief Financial Officer Brandon Taylor said in the release.

Ozarks Heritage Financial Group originally was approved for $81.7 million through the ECIP when the investment was announced in late 2021, according to past reporting. Katrina Sweaney, vice president of human resources for Legacy Bank, said the increased capital raise was due to some institutions not being prepared to release a plan on how to distribute the funds to the Treasury, and thus declining them.

“We are excited to have been approved by the Treasury as a recipient of an ECIP investment. It clearly demonstrates their confidence in our organization and support for our future vision,” Legacy Bank CEO John Everett said in the release.