Having already raised $50 million in fresh capital this year, Seattle Bank announced this week that it has received another $12 million from investors that its chief executive officer said the once-ailing bank would use to accelerate its growth plan.
In a news release Thursday, CEO Patrick Patrick said that the capital infusion signals "a tremendous demonstration of confidence among our investors in the bank's future."
Seattle Bank, with $423 million of assets, was fighting for its life this time last year as losses on real estate loans continued to pile up. Under Patrick, who was brought in last summer to lead the turnaround, the bank has shrunk its balance sheet, unloaded problem assets and shuttered mortgage offices in California, Oregon and Washington, all of which have made the bank more attractive to investors.
The $50 million it raised in January from local investors and business leaders boosted the bank's total risk-based capital ratio from 3.77% at Dec. 31 to 19.77% three months later, according to Federal Deposit Insurance Corp. data.
The latest round of funding came from more than 60 current and new investors who bought a total of 1.2 million shares at $10 each. Patrick said the bank would use the funds to expand in the Seattle market and reach out to new customers.
"This investment puts Seattle Bank into exceptionally well capitalized territory and will allow us to move forward on our strategic plan sooner than expected," he said.