Neighborhood Bancorp in San Diego has an agreement in place to raise $6 million.
The $58 million-asset company said in a press release Monday that Stephen Taylor, chairman and chief executive of Taylor Asset Management in Chicago, is leading a $6 million investment in its Neighborhood National Bank, effectively doubling its capital.
The company said the investment would raise the bank's Tier 1 capital ratio to more than 18% and its total risk-based capital to more than 38%. The transaction expected to close between now and January.
"This agreement represents an important step in recapitalizing and positioning the bank for future growth," Dan Yates, the bank's president and chief executive, said in the release.
Yates said that, through strategic planning and board oversight, Taylor has been able to help turn around several California banks, including Tri-Valley Bank in San Ramon, Coast National Bank in San Luis Obispo, Pan Pacific Bank in Fremont and Sierra Vista Bank in Folsom.
Neighborhood National Bank, a community development financial institution, was formed in 1997.