Coast Bancorp (CTBP) raised $6.8 million in capital through a private placement offering as it looks to grow after recently resolving a regulatory order.
The San Luis Obispo, Calif., company announced on Friday that it sold 4.8 million in common stock at $1 per share, as well as $2 million of private lender senior notes.
Existing Coast Bancorp investors were the primary buyers in this offering, the company said in a press release.
Coast Bancorp will use the proceeds from the offering to bring current the bank's accrued interest on its subordinate debt, as well as augment capital to its subsidiary, Coast National Bank.
The $123 million-asset Coast Bancorp entered into a consent order with the Office of the Comptroller of the Currency in February 2011. This order was lifted just two months ago.
"The bank is now poised to grow and take advantage of changes in the local banking market as one of the few remaining community banks in San Luis Obispo County," said Anita Robinson, chief executive of Coast Bancorp and Coast National Bank, in a news release.
FIG Partners served as the placement agent for the offering.