California's Redfed Bancorp raised $26 million in a secondary offering of stock, solidifying its recovery and cushioning the blow from an expected deposit insurance assessment.

Redfed chief executive Ann Bacon said the thrift holding company will now be "well capitalized" for regulatory purposes. The new capital wasn't called for under its supervisory agreement with the Office of Thrift Supervision, but raising it was a prudent step in assuring the company's future after a period of uncertainty marked by asset-quality problems, she said.

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