Gateway Bank in Oakland, Calif., raised $16.1 million in a private placement.
The bank said in a press release that it sold common stock to institutional and accredited investors. The pricing wasn’t disclosed.
Proceeds will be used to strengthen regulatory capital ratios and support organic growth and strategic expansion into new Bay Area markets.
The capital raise “positions Gateway Bank to accelerate our growth initiatives while staying anchored to what matters most — our customers,” Mukhtar Ali, the bank’s president and CEO, said in the release.
“Continued consolidation in the Bay Area banking space has created meaningful market dislocations, opening gaps that we are uniquely positioned to capture,” Ali added. “We see a compelling opportunity ahead, and strategic deployment of these funds will let us move decisively into those gaps, driving sustainable value creation and stronger financial performance over the coming years.”
Janney Montgomery Scott and Godfrey & Kahn advised the bank.