Capital Bancorp (CPBB.OB) CEO Rick Hart said in a letter to shareholders today that the Nashville bank intends to raise $10 million through an offering of trust preferred securities. Also, Capital Bancorp plans to expand more extensively into Williamson County, a move that is expected to reduce per-share earnings in the near term.
Proceeds from the offering will be used mostly to further capitalize the bank. Trust preferreds avoid dilution of stockholders, Hart noted.
As to the expansion into "highly attractive, highly competitive" Williamson County, he said that "we think that the growth will pay great dividends over the next five years." It could open as many as three branches in that county.
These issues were first brought up at the company's annual meeting of shareholders.
Capital Bancorp has expanded into space at 1808 West End Avenue, and has added staff. Most recently, Jim Gardner joined the bank as vice president of commercial lending. Previously the Nashville native was a commercial lender with The Bank of Nashville.
Hart said in his letter that he is encouraging staffers to help increase the bank's deposit base in order to fund new loans. These efforts, along with the additional staff and space required, are expected to put pressures on the company's net interest margin and on fully diluted net earnings.
- ALEX B FRUIN INHERITANCE TRUST; CANDACE F STEFANSIC INHERITANCE TRUST; CANDANCE F STEFANSIC INHERITANCE TRUST; FRUIN, ALEX B TRUSTEE; FRUIN ALEX B INHERITANCE TRUST; STEFANSIC, CANDACE F TRUSTEE; STEFANSIC CANDACE F INHERITANCE TRUST; STEFANSIC CANDANCE F INHERITANCE TRUST
- ROSS, BRIDGETT D
- COOKE, ETHEN LANYARD TRUSTEE; COOKE, ETHEN LEWIS ESTATE
- JACOBS, JESSICA ALEXANDRA; JACOBS, ERIKA BESS