Bank of Internet Plans $10 Million Capital Raise

BofI Holding Inc. in San Diego is planning to raise $10 million in a stock sale and intends to use the proceeds to support growth and to boost regulatory capital at its bank subsidiary, Bank of Internet USA.

In a news release Thursday, the $2 billion-asset BofI said that it, along with its placement agent, B. Riley & Co. LLC, will sell 10,000 shares of preferred stock at $1,000 each. The preferred stock, which pays an annual dividend of 6%, will be convertible into common stock at an initial conversion rate of 61.92 shares.

The company said that until it is ready to put the funds to use, it will temporarily invest the money in short-term liquid investments or use it to decrease short-term indebtedness.

BofI reported net income of more than $5.5 million for its fiscal fourth quarter, which ended June 30, an 18.1% increase from the same period a year earlier.