Taylor Capital Group Inc. in Rosemont, Ill., said that it has raised $120 million in a private placement and subordinated debt issuance, and that it would use the proceeds to fuel growth and strengthen its balance sheet.
The total is $20 million more than what the $3.7 billion-asset Taylor Capital said it intended to raise when it announced a tentative agreement in July to raise capital. The investors included Harrison I. Steans, the former chairman of LaSalle National Bank, and his daughter, Jennifer W. Steans, the chairman of USAmeribancorp Inc. in Largo, Fla. They are expected to join Taylor Capital's board when the deal closes this month.
Mr. Steans would be part of a newly created executive committee, along with Bruce W. Taylor, the company's chairman, and Mark Hoppe, the president and chief executive of its Cole Taylor Bank.
Other investors include the Taylor family, several members of Cole Taylor's management team, and Chicago investment firms, Taylor Capital said late Thursday.
"The new capital committed by these investors will support the accelerated growth we have experienced since more than doubling the size of our commercial banking team," Mr. Taylor said.
Taylor Capital also plans to use the capital to fortress its bank against rising commercial real estate problems. In the second quarter the company lost $25.3 million, primarily because of a $49.4 million provision for loan losses.