SAN DIEGO, CA – Bank of Southern California (OTC Bulletin Board: FBBN) announced that it has raised $3.1 million in new capital in a private placement of common stock and separately announced it has received regulatory approval to acquire approximately $24 million in deposits from another institution.
“This additional capital increases the bank’s total capital to $22.7 million, making us one of the best-capitalized banks in the region,” said Nathan Rogge, President and Chief Executive Officer. Bank of Southern California’s total risked-based capital ratio is now 17.6% compared to the minimum level of 10% required to be considered “well-capitalized.” The bank’s Tier 1 capital ratio has been increased to 11.9%.
“Our strong capital position presents opportunities to continue to grow the bank through lending and acquisitions,” noted Rogge, “and provides a solid financial foundation that benefits both customers and investors.”
The bank also announced it has received regulatory approval to acquire approximately $24 million in deposits from Mizuho Corporate Bank of California. This transaction is anticipated to close on or around August 26, 2011, and will raise the bank’s total deposits to approximately $179 million and total assets to $207 million.
“Acquiring this portfolio of core deposits increases our client base, provides additional liquidity to fund loan growth, and provides an immediate impact on profitability,” Rogge added. “This acquisition supports our strategy of growing the bank through opportunistic transactions in Southern California.”
In the last 12 months Bank of Southern California has expanded its footprint in the region by opening an office in downtown San Diego and acquiring the Palm Springs and La Quinta offices of Palm Desert National Bank.