Thursday, May 23, 2013

NewDominion Bank finishes $10 million capital raise

Charlotte's NewDominion Bank is set to announce Thursday that it has finished the $10 million capital raise it's been working on for the past year.

Nearly all of it was raised from Charlotte residents, with an average investment of $40,000. The new method of fundraising was enabled in part by a new federal law that allows banks to have more investors before being required to register with the Securities and Exchange Commission.

The capital will go a long way toward helping NewDominion get out from under a regulatory consent order issued after the mortgage bust. The Charlotte bank's capital had eroded from losses on development loans. Since then, a new management team has been working to clean up its balance sheet.