California Business Bank Announces Raising $5 Million in New Capital
July 08 2011 - 5:41PM
Business Wire
California Business Bank (CABB.OB) announced today that it has
raised $5,060,505 in new capital prior to the June 30, 2011 quarter
end. The tier 1 leverage ratio will be 10.0% for the second quarter
and is anticipated to be over 13.0% for the third quarter. The Bank
had a tier 1 leverage ratio of 8.3% until the new capital was
raised.
Mr. Cole W. Minnick, Jr., President and Chief Executive Officer,
stated, “The generation of the funds for this additional capital
was a very lengthy and difficult process. The very hard work by our
Chairman, Mr. Raffi D. Krikorian, throughout this process and the
recent efforts of Mr. Steve Hong, Vice Chairman, made the
difference. This new capital will provide the necessary funds for
us to make a mark in the business community we serve. The Bank will
be able to better address the need of its existing customers with
the assistance of the new shareholders and be able to reach markets
long targeted by the Bank in its calling program.”
The Bank is a full service commercial bank offering internet
banking as well as remote deposit for its customers. The Bank
offers DDA accounts as well as money market accounts on a tiered
basis. The CD products are very competitive for the rates and
terms. The loan products range from lines of credit to term loans
that provide financing for the various conditions of a successful
business. The Bank is located in downtown Los Angeles and has a
branch in Rancho Cucamonga.
Mr. Krikorian stated, “It is well known today how challenging
the current banking environment is to raise capital for a Southern
California based community bank. Our success in raising these funds
is a vote of confidence in CABB’s franchise, and its
constituents.”
The Bank is required under a consent order from the Federal
Deposit Insurance Corporation and the California Department of
Financial Institutions to raise a minimum of $5 million and have a
leverage capital level of at least 9.0%.
Forward Looking Statements
Certain matters discussed in this press release constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, and are subject to the
safe harbors created by the act. These forward-looking statements
refer to the Company’s current expectations regarding future
operating results, and growth in loans, deposits, and assets. These
forward looking statements are subject to certain risks and
uncertainties that could cause the actual results, performance, or
achievements to differ materially from those expressed, suggested,
or implied by the forward looking statements. These risks and
uncertainties include, but are not limited to (1) the impact of
changes in interest rates, a decline in economic conditions, and
increased competition by financial service providers on the
Company’s results of operation, (2) the Company’s ability to
continue its internal growth rate, (3) the Company’s ability to
build net interest spread, (4) the quality of the Company’s earning
assets, and (5) governmental regulations.
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