Reliant Bank in Brentwood, Tenn., is looking to raise up to $12 million to satisfy an agreement with regulators and to promote growth.
The $394.8 million-asset bank will sell as many as 1.5 million class B common shares at $8 a share through the end of the year, Chief Executive DeVan Ard Jr. said Thursday. Most of the funds are expected to be raised from previous investors, he said.
The Nashville Business Journal reported last week that the bank is working through a year-old, informal memorandum of understanding with regulators. Ard said that the bank agreed to maintain capital levels consistent with its growth but declined to discuss specifics. The privately held company is regulated by the Federal Reserve and the Tennessee Department of Financial Institutions.
The capital raise will help fulfill that agreement and prepare for expansion, Ard said. Growth could come from improvement in the economy, or through a whole bank or branch acquisition in a new market, he said. The bank operates in Williamson and Davidson counties.
“There are good markets that we are not in that I think would be a better strategic move for us instead of a de novo branch,” Ard said. “There are several counties that are attractive in terms of long-term potential.”
