New Century Bank Announces Successful Completion of Capital Raise
Raised $43 million of common stock
PHOENIXVILLE, Pa., Feb. 18 /PRNewswire/ -- New Century Bank today announced that it successfully raised $43 million of common stock in a Private Placement Offering. "We are very pleased to increase our capital by 180% with this raise," mentioned Jay Sidhu, Chairman & CEO. "This growth capital will be used for organic growth, FDIC assisted acquisitions and in market acquisitions of small banks."
The bank sold 10.1 million shares of its voting common stock and Class B Non-Voting Common Stock at a price of $4.28 per share which was tangible book value at 12/31/2009. No investor owns more than 9.9% of the aggregate outstanding shares of the Bank's voting common stock and Class B Non-Voting Common Stock following the closing of this transaction.
Each investor who participated in this capital raise and owns more than 9% of the common equity of the company is a lead investor. There were six lead investors in this deal and they each received warrants equal to 5% of the shares that they purchased struck at $4.28 per share. These investors also have the right to invest in future capital raises over the next 12 months at the issuance price of this deal ($4.28 per share).
This is the second capital raise since June of 2009 as the Bank continues to build a strong foundation for growth in the future. Since June of 2009, the Bank has successfully raised approximately $60 million of capital, enhanced the management team, improved risk management practices, enhanced liquidity, grew deposits by 36% and tightened underwriting policies.
"This capital raise significantly enhances the Bank's capital ratios increasing the total risk based capital ratio to over 30% and the tangible common equity to tangible asset ratio to close to 17%," stated Tom Brugger, Executive Vice President and Chief Financial Officer.
Macquarie Capital (USA) Inc. and Stifel Nicolaus were placement agents for this capital raising transaction.
New Century Bank is a $352 million financial services company operating five banking and commercial lending offices in Chester and Delaware Counties, Pennsylvania.
In addition to historical information, this information may contain "forward-looking statements" which are made in good faith by New Century Bank ("the Bank"), pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to the Bank's strategies, goals, beliefs, expectations, estimates, intentions, financial condition, results of operations, future performance and business. Statements preceded by, followed by or that include the words "may," "could," "should," "pro forma," "looking forward," "would," "believe," " expect," "anticipate," "estimate," " intend," "plan," or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond the Bank's control). Numerous competitive, economic, regulatory, legal and technological factors, among others, could cause the Bank's financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements. The Bank cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact that any future acquisition may have on the Bank and any such forward-looking statement. The Bank does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by or on behalf of the Bank.
SOURCE New Century Bank
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