LOS ANGELES--(BUSINESS WIRE)--Open Bank (OTCBB: OPBK) (the “Bank”), today announced the closing of a private placement totaling $30 million of common stock. The proceeds from the capital raise will be used for general corporate purposes, including supporting the growth of the Bank. The Company issued 5,000,000 shares of common stock, no par value at a price of $6.00 per share. The shares were offered on a best-efforts basis through Keefe, Bruyette & Woods, A Stifel Company (“KBW”), as placement agent, in accordance with a Placement Agent Agreement between the Bank and KBW.
“The success of this capital raise is a reflection of the strength of our franchise, employees and business plan as a leading Korean-American community business bank in the Greater Los Angeles area. The additional capital will enhance our strategic capabilities to grow our franchise and support the needs of our customers. This will also increase our tangible common equity to assets from 8.5% to 14.8% as of March 31, 2014,” said Min Kim, President and Chief Executive Officer.
The shares were offered and sold to institutional investors and a number of other accredited investors. The shares are exempt from registration with the Securities and Exchange Commission pursuant to Section 3(a)(2) of the 1933 Act. A securities permit for the offer and sale was obtained from the California Department of Business Oversight. The Bank’s common stock is traded on the Over-the-Counter Bulletin Board trading system (the “OTCBB”) under the symbol “OPBK.”
The Bank was represented by Buchalter Nemer, a professional corporation, Los Angeles, CA, and KBW was represented by Graham & Dunn P.C., Seattle, Washington.
About Open Bank
Open Bank is a California chartered commercial bank headquartered in Los Angeles, California. The Bank serves Korean-American customers in the Greater Los Angeles area. The Bank is focused on building a relationship based community bank as an alternative to the larger Korean-American banks that it believes have lost sight of serving small to medium-sized businesses in the Korean-American sector. The Bank’s main branch and headquarters is located in downtown Los Angeles. Since the beginning of 2013, the Bank has opened four other branches in Koreatown and the Fashion District in Los Angeles, the city of Gardena and the city of Buena Park in Orange County. The Bank is planning to open an additional branch in Koreatown in the summer of 2014. The Bank offers a full range of commercial banking services to the small and middle-market businesses, professionals and residents in its market areas. The Bank strives to offer its customers personalized “relationship” banking with a superior level of service. The Bank has bilingual staff members possessing Korean and English language skills as well as other ethnic language proficiencies. At March 31, 2014, the Bank had total assets of $384 million, total loans, including loans held for sale, of $313 million, total deposits of $349 million and total equity of $32.7 million. The Bank’s principal offices are located at 1000 Wilshire Boulevard, 5th Floor, Los Angeles, California 90017. The Bank’s website address is www.myopenbank.com.