Posted on March - 28 - 2010
PVF Capital Corp. to get $30 million capital boost via sale of stock
On Friday, PVF Capital Corp. will have access to $30 million it raised through a rights offering that expired Monday.
PVF issued more than 17 million shares of its common stock via the rights offering. Each PVF share previously owned allowed a shareholder to buy 1.8431 PVF shares at $1.75 a share.
The offering was oversubscribed by stockholders and the standby purchaser, CapitalWorks affiliate Short Vincent Partners II L.P. Stockholders who exercised oversubscription rights will receive more than 88% of the shares for which they submitted oversubscription orders, the company said.
PVF is the parent company of Park View Federal Savings Bank in Solon, a 17-branch institution.
PVF president and CEO Robert J. King, Jr. called the sale of stock a “good news story.” He said it will solidify the company’s balance sheet.
In a statement, Mr. King also said the offering will position the company to achieve profitable growth.
“We are extremely pleased by our success in raising this capital in a very difficult environment, and we are very gratified by the support of our stockholders,” Mr. King said. “We view this as a critical step in the rebuilding of Park View Federal. Following the closing of the offering we will significantly exceed our regulatory capital requirements.”
PVF and its bank received cease-and-desist orders from the federal Office of Thrift Supervision last fall that required the bank to raise its core capital level to 8% and its total risk-based capital to 12% and return to profitability by Sept. 30, 2010, among other requirements.
As of Dec. 31, Park View’s core capital ratio was 7.15% and its total risk-based capital ratio was 10.74%.
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