FORT LEE, N.J., May 4, 2015 /PRNewswire/ -- On April 16, 2015, Noah Bank completed a capital raise that consisted of a private placement of 2,658,000 shares of its common stock and $9.0 million aggregate principal amount of Fixed Rate Subordinated Notes due 2025. After offering expenses, the offering resulted in approximately $10.96 million of net cash proceeds to the Bank. Of the shares of common stock sold in the offering, 1,210,000 shares were sold to "friends and family" through the efforts of CEO Edward Shin and the remaining shares of common stock were sold to an experienced institutional investor. The subordinated notes were sold to two experienced institutional investors, and are expected to qualify as Tier 2 capital for regulatory capital purposes.
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Chairman Young Man Kim stated, "We are very pleased to complete this capital raise. This is a demonstration of the support that Noah Bank enjoys in the local community, as well as the institutional market."
As of March 31, 2015, Noah Bank had assets of approximately $302 million, deposits of approximately $248 million, and loans of approximately $255 million (net of loan loss allowance). After giving effect to the offering, as of March 31, 2015, the Bank's estimated Tier 1 Leverage Ratio would be 11.2% and the Bank's estimated Total Risk-Based Capital Ratio would be 16.5%.
CEO Edward Shin added that "This additional capital provides further support for the Bank's operations and will allow the Bank to well exceed the capital ratio requirements set forth in the existing consent agreements with the FDIC and the Pennsylvania Department of Banking and Securities. We are very pleased with the outcome of the offering."
Sandler O'Neill & Partners, L.P. acted as placement agent for this offering. Stevens & Lee acted as counsel to Noah Bank and Holland & Knight LLP acted as counsel to the placement agent.
About Noah Bank
With its legal headquarters in Elkins Park, PA, Noah Bank is a Pennsylvania-chartered bank that was launched in 2004. Operational headquarters are in Fort Lee, New Jersey. Noah Bank provides banking products and services to businesses and consumers primarily in the Asian-American communities of Southeastern Pennsylvania, Northern New Jersey, Manhattan, New York and Flushing, New York. More information is available at www.noahbank.com.
Forward-Looking Statements
The foregoing material may contain forward-looking statements. Noah Bank cautions readers not to place undue reliance on these statements. Noah Bank's business and operations are subject to a variety of risks, uncertainties and other factors. Consequently, actual results and experience may materially differ from those contained in any forward-looking statements. Such risks, uncertainties and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: difficult conditions in the capital markets and the economy generally, regulatory requirements or other actions mandated by Noah Bank's regulators, recent and ongoing changes to the state and federal regulatory schemes under which Noah Bank and other financial services companies operate (including the Dodd-Frank Act and regulations adopted or to be adopted to implement that Act), Noah Bank's ability to comply with the Consent Orders, dated October 23, 2014, entered into with the FDIC and Pennsylvania Department of Banking and Securities, any changes in SBA loan programs and our ability to comply with SBA policies and procedures, delayed improvement in the credit quality of loans, the effect of credit risk exposure, the ability to strategically manage our capital position and to raise capital, allowance for loan losses may prove inadequate, variations in interest rates, the geographic concentration of Noah Bank's operations, declines in the value of Noah Bank's assets and the effect of any resulting impairment charges, competition for personnel and from other financial institutions, interruptions or breaches of Noah Bank's security systems, the development and maintenance of Noah Bank's information technology, potential dilution of Noah Bank's shareholders, the ability of Noah Bank and its subsidiaries to pay dividends, severe weather and natural disasters, and the nature and frequency of litigation and other similar proceedings to which Noah Bank may be a party. Noah Bank makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances occurring or existing after the date any forward-looking statement is made.
SOURCE Noah Bank
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