First Charter Bank announces completion of recapitalization changes in senior management.BEVERLY HILLS, Calif.--(BUSINESS WIRE)--Sept. 30, 1996--First Charter Bank (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:FCBK), N.A. announced Monday the completion of a $5.5 million recapitalization through private placement of a newly created issue of Non Cumulative Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". Series A, to a group of institutional and individual investors. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the offering, estimated to be $5.048 million will constitute Tier 1 capital Tier 1 Capital A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves. Notes: Equity capital includes instruments that can't be redeemed at the option of the holder. of the Bank. As a result of this offering, the Bank believes it is in compliance with the capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. of a Prompt Corrective Action directive recently issued by the Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (or OCC) was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States. . Commenting on the successful recapitalization, Chief Financial Officer Robert Junet stated: "We are extremely pleased that the Bank was able to successfully raise this amount of capital from a group of sophisticated investors. We believe it reflects confidence in the improving Southern California economy as well as the prospects for First Charter Bank." The Bank also announced that its President and Chief Executive Officer, Peter Bustetter, was implementing a long delayed retirement plan. In late 1995, Bustetter indicated to the board of directors his desire to relinquish his responsibilities as chief executive officer, but was willing to continue through a successful recapitalization, Bustetter will, however, remain as a member of the board of directors. Replacing Bustetter will be James Brewer, a veteran community Bank executive in Southern California. The Bank also announced the resignation from the board of directors of Isaac "Buddy" Salzberg who will be replaced on the board by Brewer. Commenting on his appointment as Chief Executive Officer, Brewer stated: "I am extremely gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. and excited by the prospects for First Charter Bank. The new capital should enable the bank to grow and further penetrate one of the wealthiest and most competitive banking markets in the United States. With the recent consolidations in the California banking industry several opportunities exist for the type of personalized and responsible banking services First Charter Bank will be able to provide." First Charter is federally chartered and headquartered in Beverly Hills with a branch office in West Los Angeles
CONTACT: Radcliffe & Associations Donald Radcliffe, Investor Relations 212/605-0424 or First Charter Bank, Beverly Hills James Brewer, 310/278-7200 |
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