California Bank of Commerce in Lafayette has raised $9 million to help it exit the Small Business Lending Fund.
The $653 million-asset company said in a press release Friday that it sold $4 million in common stock and issued $5 million in subordinated debt to institutional investors.
California Bank said it would use the proceeds to support its growth and help fund the redemption of $11 million of outstanding preferred stock held by the Treasury Department, among other things. The company received SBLF funds in September 2011, around the time it exited the Troubled Asset Relief Program.
Hovde Group assisted with the debt issue, while Stinson Leonard Street advised the company.