This investment is primarily aimed to strengthen the company’s balance sheet and to expand the bank’s small business lending platform. On December 31, 2008 the Fund purchased a 4.8% stake in the Bank and is scheduled to complete its $18 million investment on June 5, 2009.
Upon completion of the Investment, the Fund will own a majority interest in the common stock of the bank. Additionally, the bank will continue its commercial banking emphasis and expand its Small Business Lending Division
Robert Feldhake, Chairman of the Bank’s Board of Directors, said: “Plaza Bank started working on an additional capital raise in early 2008 and we are very pleased to have attracted such a strong capital partner and an experienced and talented executive management team to lead Plaza Bank’s renewed support of the small business customer.”
“During the past year, the Board has appreciated and respected the loyalty of Plaza Bank’s shareholders, employees as well as present and prospective customers. Now we will all redouble efforts to drive the Bank to greater business successes, for the short and long term benefit of every shareholder, employee and customer. This was a challenging environment in which to raise capital for a community business bank, but we’ve succeeded where many have failed, he added.
