New Century Bank, Jay S. Sidhu's most recent endeavor, has increased its capital by 180% as it seeks to embark on a major growth spurt.
The $352 million-asset bank in Phoenixville, Pa., announced that it raised $43 million of common stock in a private placement, giving it total risk-based capital of more than 30% and a tangible common equity ratio of nearly 17%.
This is the second time the bank has raised capital in the past year. In June, New Century raised $13.6 million in a private placement led by Sidhu, the former chairman and chief executive of Sovereign Bancorp Inc. Following the June private placement, Sidhu was appointed New Century's chairman and CEO.
In a press release, Sidhu said the capital will be used for organic growth as well as to acquire failed banks and other banks within its market.
