Bank of Georgetown in Washington, D.C., has raised more than $25 million in fresh capital that it will use to fund its continued expansion in the city and surrounding suburbs.
The privately held bank said Monday that it shares of its stock were sold to both local shareholders and institutional investors at $15 each, or 1.2 times its book value. Commerce Street Capital of Dallas acted as the placement agent. Commerce is affiliated with Commerce Street Financial Partners LP, a private-equity fund that has owned a minority stake in the bank since 2009 and purchased additional shares in the latest offering.
"We are delighted with the results of this new equity offering," Bank of Georgetown President and Chief Executive Officer Michael Fitzgerald said in a statement. "We are especially excited about our strategic expansion in Northern Virginia with the addition of high-quality teams and locations."
The six-year-old bank has added two business development teams and two new offices in Northern Virginia in recent months, and is planning to open another branch this summer in Northwest Washington. The bank's assets have increased by nearly 22% in the last year, to $500 million at March 31.