Pacific West Bank in West Linn, Ore., plans to raise up to $4.5 million of fresh capital.
The $72.6 million-asset company has been operating under a regulatory order requiring it to boost capital and maintain higher capital ratios as a cushion against future loan losses. Pacific West said late Thursday that it would sell up to 1.5 million shares of common stock at $3 a share.
Pacific West recently sold off $1.7 million in problem loans, about a quarter of the $6.9 million in nonperforming assets it held at the end of the second quarter. It was adequately capitalized as of June 30, with a total risk-based capital ratio of 8.45%.
