Congressional Bancshares in Chevy Chase, Md., plans to form a specialty finance unit after raising $345 million in a private placement.
The $3.5 billion-asset company said in a press release last week that it raised the capital by selling stock to a group led by Centerbridge Partners, Gallatin Point Capital, Bayview Asset Management and BlackRock.
Each of those investors will appoint a director to join Congressional’s board. Donald Kohn, a former vice chairman of the Federal Reserve, will also join the company’s board.
Congressional said proceeds from the private placement will be used to capitalize its bank and to form a new specialty finance subsidiary as it looks to make $10 billion of loans over time in its health care, lender, leveraged finance and sustainable finance businesses.
“We look forward to serving our customers with broader loan capabilities, focused financial solutions and an enhanced digital banking experience,” Don Cole, Congressional Bank’s CEO, said in the release.
