Seattle commercial bank Fortune Bank said Thursday it is planning to raise about $360 million in an initial public offering.
The move would nearly quadruple the bank's assets, which stood at $126.2 million at the end of the first quarter. Fortune Bank had $110.9 million in total deposits. Fortune Bank in April had told shareholders it planned a capital raise of at least $450 million.
The small regional bank also says Martin Glynn, the former chief executive of HSBC Bank USA, will become the bank's new CEO after the IPO. Glynn retired from HSBC in 2006.
The bank will offer 40 million shares for $8 to $10 each. Underwriters led by Keefe, Bruyette & Woods may buy another 6 million shares in the event demand exceeds initial supply. Total proceeds could reach as much as $460 million, which the bank plans to use for internal growth and acquisitions.
Fortune Bank was founded in 2006. It is privately held, and has about 300 shareholders and 27 employees, according to a statement in March. In the first quarter, the bank's loss narrowed to $133,000 from a loss of $523,000 in the first quarter of 2009.
Net interest income during the first quarter of 2010 rose 45 percent to $1.1 million from $746,000, while the bank's reserve for loan losses dropped 76 percent to $65,000 as credit quality improved.
The company's allowance for loan losses was 3.1 percent during the first quarter.
Fortune Bank plans to list its shares on the Nasdaq Global Market under the symbol "FBBC."
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