Local Bank Launches Public Offering

A Pasadena-based bank launched a public offering of 11 million common shares on Monday in an attempt to raise capital to help it survive the current economic situation, sources said.

The public offering by East West Bancorp, Inc., was solely underwritten by Barclays Capital, Inc., according to CNBC. As part of the offering, the companies announced Barclays can by an addition 1.7 million shares.

According to East West, the public offering netted about $168.9 million. CNBC reports that shares for the bank closed at $6.99 on Friday.

The sale was initiated after the bank reported a second quarter loss last week that was greater than anticipated, though East West was able to cut its shortfall by reportedly selling problem loans. Accordingly, the bank said it was able to reduce its delinquencies by 39 percent.