The $295 million-asset bank said that the first phase of the capital raise was completed Friday and that the next phase is contingent on approvals from its regulators. The investors are a mix of existing shareholders and unnamed outsiders who will be awarded three board seats once the capital raise is completed, Legacy said in a news release Friday.
Plagued by defaults, the five-year-old Legacy has been operating under an enforcement order from state and federal regulators since late last year that requires the bank to clean up its loan portfolio, strengthen board and management oversight and maintain a total risk-based capital-to-assets ratio of at least 12%.
At June 30, the bank was undercapitalized, with a total risk-based ratio of 7.09%, and nearly 10% of its loans were at least 90 days past due, according to Federal Deposit Insurance Corp. data.
Legacy is a business-focused bank with offices in Boca Raton, Delray Beach, West Palm Beach, Pompano and Fort Lauderdale.
Be the first to comment on this post using the section below.