Under orders from regulators to beef up its capital levels, Legacy Bank of Florida in Boca Raton has raised $2.8 million in new capital and has deals in place in to receive an additional $13.5 million.

The $295 million-asset bank said that the first phase of the capital raise was completed Friday and that the next phase is contingent on approvals from its regulators. The investors are a mix of existing shareholders and unnamed outsiders who will be awarded three board seats once the capital raise is completed, Legacy said in a news release Friday.

Plagued by defaults, the five-year-old Legacy has been operating under an enforcement order from state and federal regulators since late last year that requires the bank to clean up its loan portfolio, strengthen board and management oversight and maintain a total risk-based capital-to-assets ratio of at least 12%.

At June 30, the bank was undercapitalized, with a total risk-based ratio of 7.09%, and nearly 10% of its loans were at least 90 days past due, according to Federal Deposit Insurance Corp. data.

Legacy is a business-focused bank with offices in Boca Raton, Delray Beach, West Palm Beach, Pompano and Fort Lauderdale.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.