California United Bank in Encino said Thursday that it raised about $10.3 million in a private placement mostly through 16 institutional investors.

The $756.7 million-asset bank said it sold 805,156 shares at $12.75 each, representing 125% of tangible book value.

California United was well capitalized at Dec. 31, with a total risk-based capital ratio of 12%.

David Rainer, the bank's president and CEO, said in a press release that the offering was not "designed to pay off Tarp nor to address capital gaps caused by loan losses." The purpose was "to support our continued growth, maintain our well capitalized status as we grow and provide us with the ability to exploit opportunities which we may identify in the future," Rainer said.

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