While West Coast Bancorp was able to raise $155 million in new capital, it sold 83% of itself to the new investors in the process.
The bank cut the new investors a deal granting them stock at $2 a share, less than 20 percent of the book value of the bank's stock as of Sept. 30.
But the traditional metrics of a bank's market value are out the window in today's environment. The economic downturn has brutalized community banks like West Coast. Continuing uncertainty over the economy and non-performing loan issues that refuse to go away have pushed bank values to unforeseen lows.
Read the full story at OregonLive.com.