California Bancorp (CALB)

[56Chevy]

California Bank of Commerce Completes $16MM Common Equity Offering

June 30, 2014 10:00 AM

LAFAYETTE, Calif.--(BUSINESS WIRE)--California Bank of Commerce (OTCQB:CABC) announced today it completed its capital offering of $16 million in common equity.

“The new capital will allow the Bank to expand relationships with our existing clients, and allows us to meet the loan and deposit needs of larger commercial companies”

“We reached our maximum raise of $16 million five weeks after launching our public offering,” said Stephen Cortese, Chairman of the Board. The public offering attracted both existing shareholders and new shareholders, including a number of institutional investors. The Bank’s board and management also invested significantly in the capital raise. “It has been awhile since a Northern California bank has raised capital in a public offering to execute a growth strategy, and we are proud of our accomplishment,” said Cortese.

The Bank’s public offering was oversubscribed. “The new capital will allow the Bank to expand relationships with our existing clients, and allows us to meet the loan and deposit needs of larger commercial companies,” said Terry Peterson, President and CEO. Peterson added, “Our growth strategy also includes providing accelerated career opportunities for our existing bankers and sets a course to commence hiring additional business bankers, including credit and treasury management professionals.”

The Bank’s counsel for this offering were Ernie Panasci and Ryan Behrman of Stinson Leonard Street LLP. Robert Rogowski and Joey Warmenhoven of McAdams Wright Ragen, Inc. acted as financial advisors to California Bank of Commerce, and a portion of the offering was placed by Joey Warmenhoven of McAdams Wright Ragen, Inc.

http://www.businesswire.com/news/home/20140630005290/en/California-Bank-Commerce-Completes-16MM-Common-Equity

*CABC is one of the banks that replaced their $11MM TARP loan from the Treasury with a loan from the Small Business Administration (SBLF fund).

You can read about that program here:

http://online.wsj.com/news/articles/SB10001424052970204138204576603100469929700

Marker:
California Bank Of C (CABC)
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FD: I do not own shares of CABC at this time.