LOS ANGELES--(BUSINESS WIRE)--Pacific Commerce Bank (OTCBB:PFCI) reported a successful capital raise through a private placement of its common stock.
Capital Raise
The Bank entered into a stock purchase agreement with certain accredited investors, pursuant to a stock permit issued by the California Department of Financial Institutions on January 13, 2011. The Bank sold 1,000,000 shares of its common stock at a price of $5.00 per share (equivalent to approximately 83% of per share book value as of September 30, 2010), resulting in $5 million taken into capital. The capital raise is for general corporate purposes and to better position the bank to pursue certain strategic opportunities. The initial $5 million raise will result in a tangible equity ratio of approximately 12.9% (based on assets as of September 30, 2010).
“We are extremely pleased with the level of interest in this transaction by both outside investors and by our friends. Compared to a number of other community banks that have been forced to raise capital at extremely dilutive prices of 30% to 50% of book, our price of $5 per share reflects well on the direction of the bank and the investors’ confidence in our management,” commented Brian Kelley, President & CEO. “The new capital will allow us to continue the progress we have made in implementing our business plan and improving asset quality, and should better position the bank for future opportunities,” continued Mr. Kelley.
About Pacific Commerce Bank
Established in 2002, Pacific Commerce Bank is a community bank with offices in Downtown Los Angeles and West Los Angeles. Founded by local business owners and professionals, it is focused on meeting the diverse needs of those clients. It is publicly traded on the OTC Bulletin Board under the stock symbol PFCI. The bank offers small business loans, asset-based loans, construction and permanent real estate financing, SBA government-guaranteed loans, as well as personal and professional credit lines. Information on the bank as well as a copy of the bank’s most recent newsletter and financial summary can be accessed through its website: “pacificcommercebank.com” or by calling between 9:00am and 5:00pm at 213-617-0082.
Forward-Looking Statements
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:
The financial information in this press release is based on our unaudited financial results. Certain statements in this press release, including statements regarding the anticipated development and expansion of the bank's business, and the intent, belief, and current expectations of the bank, its directors, or its officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements are subject to risks and uncertainties and therefore the bank's actual results may differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that the bank is subject to include, but are not limited to, risks related to the local and national economy, including fluctuations in interest rates and costs and changes in economic policy; the ability of the bank to perform in accordance with its plans; competition; regulatory matters; and other risks detailed in its filings with the State of California Department of Financial Institutions and the Federal Deposit Insurance Corporation. The bank cautions readers not to place undue reliance on any forward-looking statements. The bank does not undertake, and specifically disclaims any obligation, to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.