San Diego-based Bank of Southern California announced Wednesday it has completed a capital raise of $7 million through its second common stock offering in as many years.
As part of the offering, Bank of Southern California will issue 823,529 shares of its common stock through a stock purchase agreement with Rancho Santa Fe-based alternative asset management firm Castle Creek Capital.
David J. Volk, a principal of Castle Creek, will join the bank's board of directors, the bank said. Castle Creek, which opened in 1990, focuses on the community banking industry.
The additional capital will allow the Bank of Southern California to continue growing organically and through acquisition, as it has in recent years, the company said.
Bank of Southern California has acquired four branches in the last six years: the La Quinta branch of Opus Bank in 2016, the Palm Desert branch of AmericanWest Bank and the El Paseo-Palm Desert and Rancho Mirage branches of El Paseo Bank in 2014, and the La Quinta and Palm Springs branches of Palm Desert National Bank in 2010.
The additional capital also increases the bank's legal lending limit, “which allows it to meet the growing needs of its clients,” the bank said.
Bank of Southern California, which opened in 2001, operates seven branches in San Diego and in the Coachella Valley in Riverside County.