California Republic Bancorp in Irvine, Calif., has raised $90 million through an offering of equity and debt.
The company said in a press release Monday that it raised $64.8 million by selling 2.4 million shares of common stock to several unnamed institutional investors. The $983 million-asset California Republic also issued $25 million in subordinated debt.
The company said it plans to use the proceeds to expand its auto lending and commercial banking operations. It also plans to bolster regulatory capital.
"This will provide us with the capital needed to support the continued nationwide growth of our automobile lending platform, as well as the geographical expansion of our successful commercial banking business," said Jon Wilcox, California Republic's chief executive, in a the release.
California Republic said it expects its Tier 1 leverage ratio to increase to 13.26% from 7.64%. The company's risk-based capital ratio should rise to 26.6% from 12.28%.
Additionally, the company said it earned $3.3 million in the third quarter, after losing $814,000 a year earlier. The company's quarterly profits were boosted by strong returns from auto loans.
Credit Suisse Securities acted as the placement agent for the stock offering. Sandler O'Neill was the placement agent for the subordinated debt issuance. Keefe, Bruyette & Woods acted as an adviser for both transactions.