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Open Bank Successfully Raises $11.1 Million in Additional Capital

^{Published on 2011-05-13 11:40:53 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--Open Bank (OTCBB:OPBK), a community bank headquartered in Los Angeles, today announced that it successfully raised $11.1 million in additional capital through the sale of 3,911,720 shares of authorized common stock at $2.85 in a private placement.

"This added capital will allow us to maintain favorable capital ratios."

aWe recognized that this is a difficult time and environment for community banks to raise capital and we are very pleased with the results of this private placement and the show of confidence from our existing and new shareholders,a said Open Bank President and CEO Min Kim. aThis added capital will allow us to maintain favorable capital ratios.a As a result of the capital injection, Open Banka™s tier 1 leverage ratio is 14.61% as of April 30, 2011.

About Open Bank

Open Bank (the "Bank") is engaged in the general commercial banking business in Los Angeles County and is focused on serving the banking needs of small- and medium-sized businesses, professionals, and residents with a particular emphasis on the Korean and other ethnic minority communities. The Bank commenced its operations on June 10, 2005 as First Standard Bank and changed its name to Open Bank on September 20, 2010. The Bank had total assets of $131.2 million as of March 31, 2011. Its headquarters are located at 1000 Wilshire Blvd., Suite 100 Los Angeles, California 90017. Phone 213.892.9999; [ www.myopenbank.com ]Member FDIC, Equal Housing Lender

Safe Harbor

This press release may contain forward looking statements that involve risks and uncertainties, as well as assumptions that, if they prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, among other things, any statements of the plans, strategies, and objectives of management, and statements of belief, such as statements about the Banka™s ability to maintain favorable capital ratios, and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include, among other things: the strength of the United States economy in general and the strength of the local economies in which the Bank conducts operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rate, market and monetary fluctuations; the perceived overall value of the Banka™s products and services by users, including the features, pricing and service compared to competitorsa™ products and services; the impact of changes in financial servicesa™ laws and regulations; increased deposit insurance assessments; increased shareholder activism; technological changes; acquisitions; changes in consumer spending and saving habits; and the success of the Bank at managing the risks involved in the foregoing. The Bank cautions that the foregoing list of important factors is not exclusive. The Bank also cautions readers not to place undue reliance on these forward-looking statements, which reflect managementa™s analysis only as of the date on which they are given. The Bank assumes no obligation to update such forward-looking statements, except as required by law.