Bank raises $25M
A local bank has raised $25 million through a private stock offering.
Grand Rapids-based Northpointe Bancshares, the parent company of Northpointe Bank, raised the sum through a private placement of shares of common stock issued at $43 per share to accredited investors, according to Northpointe Bancshares yesterday.
Net proceeds from the offering were about $24.3 million.
“The additional capital will allow Northpointe to support organic growth opportunities and continue to grow market share in our diversified business units, while bringing value and innovation to the people we serve,” said Charles Williams, president and CEO, Northpointe Bancshares.
An affiliate of the Sante Fe, California-based private equity firm Castle Creek Capital was the investor in the offering.
Following the closing of the private placement, Castle Creek will own 9.9% of Northpointe’s voting common stock and shares of Northpointe’s new non-voting common stock.
Northpointe said the investment results in Castle Creek owning about 27% of the outstanding equity of Northpointe.
Northpointe operates out of its sole banking office and headquarters in downtown Grand Rapids, at 3333 Deposit Dr. NE. It has 56 loan production offices throughout the country.
New York-based Sandler O’Neill & Partners served as the sole placement agent for the transaction.
Grand Rapids-based Varnum served as legal counsel to Northpointe.
Miami-based Holland & Knight served as legal counsel to Sandler O’Neill & Partners.