Bank of Southern California in San Diego has agreed to sell $7 million of its common stock to the asset management firm Castle Creek Capital.
The $389 million-asset bank said it would issue 823,529 shares of common stock to Rancho Santa Fe, Calif., asset manager. The per-share price comes to $8.50.
Proceeds from the offering, which is expected to close in the fourth quarter, will help the bank fund organic growth, "act on strategic acquisition opportunities" and increase its lending limit, Nathan Rogge, the bank's president and CEO, said in a press release Tuesday.
The bank said the common stock offering is its second in two years, aimed at raising $14 million in total.
MJC Partners was the sole placement agent for the offering. Horgan, Rosen, Beckham & Coren was the bank's legal counsel.
In August, Bank of Southern California acquired the deposits of the La Quinta branch of Opus Bank in Irvine, Calif., its fourth branch purchase since 2010.