NewDominion Bank in Charlotte, N.C., believes it is close to raising enough capital to shed a consent order.
The bank has received commitments for nearly 80% of the $10 million it must raise to shed
If the bank raises the $10 million, it will be able to use deferred-tax assets to raise its Tier 1 capital ratio to 8%, the level mandated by the FDIC order. John Hipp, the bank’s chief executive, told the Charlotte Business Journal that he hopes to complete the capital raise in “two or three more weeks.” None of the nearly $8 million in commitments has come from institutional investors or private equity, he said.
American Banker was unable to reach Hipp for further comment.
Hipp