Community Bank Investors of America, a private equity fund, entered into an agreement with La Jolla-based Silvergate Capital Corp. to purchase a 9.9 percent equity stake in Silvergate, the fund announced Aug. 9.
Silvergate Capital is the parent company of Silvergate Bank, which has been operating under a Federal Deposit Insurance Corp. cease-and-desist order since last year.
Terms of the transaction were not disclosed. Under the agreement, CBIA will immediately apply for regulatory approval from the FDIC and California Department of Financial Institutions to increase its ownership to as much as 24.9 percent, which could make it a controlling shareholder.
Anderson & Strudwick, which has served as an advisor to CBIA in the transaction, will launch a common stock offering of newly issued and selling shareholder stock for up to $31 million.
The deal is expected to close in the fourth quarter, pending regulatory approval.
, Heather Chambers