Preferred Bank in Los Angeles aimed to bring in $10 million with its recent stock offering, but demand exceeded its expectations.
The $1.4 billion-asset bank said Thursday that it had raised more than $17 million and is applying to the California Department of Financial Institutions to issue an additional 2.1 million common shares. It extended the offering's closing date to Sept. 9.
Preferred Bank, which focuses on Chinese-American customers, already had a hearty tangible common equity ratio of 9.6% at June 30. Typically analysts are satisfied with anything above 6%.
But like many banks in Southern California, Preferred has credit-quality issues. Its nonaccrual loans totaled $80.9 million, or 7.06% of total loans, at June 30.
"The additional capital will provide further comfort and cushion in our capital base," Li Yu, the bank's chairman, president and chief executive officer, said in a press release.