Bancorp 34 in Scottsdale, Ariz., has raised $14 million through a private placement of common and preferred stock.
The $572 million-asset company said in a press release that the private placement was led by Castle Creek Capital.
The company sold about 511,000 shares of common stock and roughly 522,000 shares of non-voting preferred stock. The shares were accompanied by about 100,000 warrants to buy more shares at $14 each.
The preferred stock can be converted to non-voting common stock in the future, subject to regulatory and shareholder approval.
Bancorp 34 said it plans to the net proceeds to fund organic growth and potential acquisitions, enter new business lines and enhance capital ratios.
The company said it expects to complete a second round of financing of up to another $14 million in the first quarter, which would include shares and warrants.
The private placement “further positions us to execute on our growth strategy,” Jim Crotty, the company’s president and CEO, said in the release, “This capital will support our ability to pursue potential market and growth opportunities while bolstering our balance sheet as we continue to anticipate and prepare for uncertain economic conditions.”
MJC Partners was the placement. Luse Gorman provided legal counsel.