Sunrise Bank in Cocoa Beach, Fla., announced an agreement Thursday in which a group of three investors will inject $8.6 million into the bank.
Under the agreement, the $134.3 million-asset company will offer 1.9 million shares of common stock — after a reverse 5-to-1 stock split — for $4.14 a share. The deal is expected to close in the third quarter.
The investment would increase Sunrise's capital ratios above the level considered "well capitalized" for regulatory purposes, according to a press release.
As of March 31, the bank had a leverage ratio of 5% and a total risk-based capital ratio of 8.3%. The company has been operating under a written agreement with the Federal Reserve since July 2009.
The investment group — led by Harry S. Patten, the chief executive of National Land Partners LLC, a Boca Raton, Fla., land-sales company — would own at least 85% of the company. Patten would be the majority shareholder.
