Home Banking Dogwood State raises $28M to expand across North Carolina

Dogwood State raises $28M to expand across North Carolina

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Dogwood State Bank in Raleigh, N.C., has raised $28 million in new capital.

The $612 million-asset bank said it completed a private placement to accelerate the buildout of its statewide franchise. The bank sold 2.3 million shares of stock at $12 each.

“In just over one week, the … offering was more than 2.5 times oversubscribed based on the original offering amount,” Steve Jones, the bank’s CEO, said in a press release Tuesday. “The demand for this investment opportunity was tremendous, and we are excited to welcome over 200 new shareholders to Dogwood State Bank.”

Dogwood plans to use the funds to hire more lenders and invest more in its infrastructure.

The capital raise consisted of a private placement offering of 2.3 million shares of the bank’s common stock at $12.00 per share to accredited investors.

Dogwood State was created in 2019 when a group of investors bought Sound Bank in Morehead City, N.C., recapitalized it and moved its headquarters to Raleigh.

Nelson Mullins Riley & Scarborough provided legal counsel. The bank did not use a placement agent.