SAN DIEGO, Calif.–(PRNewswire)–Bank of Southern California (OTC Pink: BCAL) announced that it has completed a capital raise of $7 million through a stock purchase agreement of the Bank’s common stock with Castle Creek Capital, based in Rancho Santa Fe, California.
As part of the offering, the Bank will issue 823,529 shares of its common stock. This is Bank of Southern California’s second common stock offering in two years, raising over $14 million.
Nathan Rogge, President and CEO of Bank of Southern California commented, “This new investment represents an endorsement of the Company’s direction and confidence in the bank’s management by a very well regarded investment firm focused on the community banking industry.”
Over the past several years, the Bank has experienced strong organic growth and has completed several acquisitions. The additional capital will help continue to fund organic growth and will provide the bank the ability to act on strategic acquisition opportunities. It also increases the bank’s legal lending limit, which allows it to meet the growing needs of its clients.
As part of the transaction, David J. Volk, a principal of Castle Creek, will join the Bank’s Board of Directors. Mr. Volk joined Castle Creek in 2005. Prior to joining the investment firm, he worked for a variety of well know companies providing merger & acquisition, financing advisory, corporate restructuring, and capital raising services to small and middle market companies.
“We are pleased that David will be joining our board of directors. His expertise and guidance in mergers & acquisitions, as well as his extensive history with other community bank investments will help contribute to our continued growth and future success,” concluded Rogge.*
The portfolio company executive has not received compensation for the above statement and this statement is solely his opinion and representative of his experience with Castle Creek. Other portfolio company executives may not necessarily share the same view. An executive in a Castle Creek portfolio company may have an incentive to make a statement that portrays Castle Creek in a positive light as a result of the executive's ongoing relationship with Castle Creek and any influence that Castle Creek may have or had over the governance of the portfolio company and the compensation of its executives. It should not be assumed that Castle Creek's investment in the referenced portfolio company has been or will ultimately be profitable.