United Bankers’ Bank provides specialized bank stock financing options for your community bank, bank holding company and shareholders. Our tailored financing solutions support long-term institutional success. Bank stock loans can help you plan for growth, manage shareholder transitions or strengthen your capital structure.  

Our experienced team serves financial institutions across more than 30 states in the Pacific Northwest, Great Lakes and South Atlantic. We understand the local market dynamics that influence valuation, regulatory requirements and growth strategies.

A bank stock loan is a financing solution that uses shares of a bank or bank holding company as collateral. These loans secured by bank stock allow institutions and shareholders to access liquidity while maintaining ownership and control.

Bank holding company stock loans are structured to account for regulations and operations. These loans are used for a range of strategic purposes, including capital restoration and merger and acquisition.

For many community banks, raising capital by issuing new shares can dilute ownership and reduce control for existing shareholders. Bank stock financing options from UBB provide an alternative.

With a bank loan against stock, you can:

• Preserve shareholder ownership and voting rights
• Maintain control during periods of growth or transition
• Finance a bank merger or branch acquisition
• Avoid the complexity of issuing new equity
• Access capital more quickly than with traditional methods of raising capital

This approach is especially valuable for closely held institutions where ownership structure and consistency matter.

United Bankers’ Bank structures bank stock loans to support a variety of high-impact use cases:

Capital Base Expansion and Growth

Support internal growth strategies such as new product lines, technology upgrades, or office or branch expansion without diluting equity.

Bank and Branch Acquisition Loans

Finance acquisitions or expansion opportunities with flexible merger and acquisition financing tailored to your community bank.

Stock Redemptions and Shareholder Liquidity

Facilitate ownership transitions, including shareholder buyouts and stock redemptions, while maintaining institutional stability.

ESOP and KSOP Financing

Create employee bank loans to invest in the stock market to align employee ownership with long-term performance goals.

Capital Restoration

Address regulatory capital needs through regulatory capitalization loans that strengthen your institution’s financial position.

Credit Lines

Holding company lines of credit can be used for individuals, shareholders, officers, directors and employees.

We offer flexible structures designed for both institutions and individuals:

Holding Company Loans

Bank holding company stock loans provide capital at the organizational level. They are often structured as term loans or holding company lines of credit.

Individual Borrower Solutions

We also offer stock-secured loans for directors, officers and key shareholders. These bank loans against stock can support personal liquidity needs or facilitate ownership transitions.

Collateral and Terms

Loans are secured by pledged bank stock and structured with repayment terms aligned to dividend flows, earnings and long-term financial planning.

Loans secured by bank stock are subject to specific regulatory frameworks, including guidance under 12 USC 1817. These regulations manage reporting requirements, ensuring proper disclosure for pledged share transactions.

United Bankers’ Bank has deep expertise in navigating these requirements. We work closely with your leadership team to structure loans secured by bank stock that comply with regulations and align with your goals.

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United Bankers’ Bank is a trusted provider of community bank lending solutions. We combine industry expertise and a relationship-driven approach. Our experience across diverse regional markets allows us to tailor financing solutions that reflect local economic conditions and valuation trends.

We also offer complementary services, such as bank stock valuations, to help inform your bank’s financing decisions and support long-term planning.

Explore Participation Loans

Our team is here to help you explore bank stock financing options, plan a merger or manage shareholder transitions.

Contact United Bankers’ Bank to discuss your needs or learn more about how a bank stock loan can support your institution’s growth.

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What is a bank stock loan, and how does it benefit my community bank?

A bank stock loan allows a bank holding company to borrow funds using its stock as collateral. This provides access to capital for growth, acquisitions or capital restoration while preserving ownership and avoiding equity dilution.

Can a bank use its own stock as collateral for a loan?

Typically, loans are structured at the holding company or shareholder level rather than directly at the bank level. Bank holding company stock loans are the most common structure for pledging shares as collateral.

Why are bank loans often better for growth than selling additional stock shares?

Using a bank loan against stock allows institutions to raise capital without diluting ownership. This helps maintain control, protects shareholder value and avoids the administrative burden of issuing new equity.

What are the regulatory considerations for loans secured by bank holding company stock?

Loans must comply with regulations such as 12 USC 1817, which governs reporting and disclosure requirements. Lenders and borrowers must ensure proper documentation, transparency and adherence to capital standards.

Can I use stock ownership as collateral for a personal bank loan as a director or officer?

Yes. Directors and officers may obtain stock-secured loans using their shares as collateral. They serve as a liquidity fund or support ownership transitions.