In a rare industry move, 16 banks raised enough capital toensure that Pan American Bank, a financial institution that hasserved the Hispanic community for 50 years, remained open forbusiness.

Founded in 1964 by the former United States Treasurer RomanaBanuelos, the $41 million Pan American Bank in Los Angeles fell onhard times as a result of the Great Recession, according to bankofficials.

The community development financial institution serves theLatino and immigrant communities in Southern California and is anactive lender in the small business and consumer markets.

Pan American Bank entered into securities purchase agreements toraise aggregate gross proceeds of $6.3 million through the sale ofapproximately 16.6 million shares of voting common stock and 109.4million shares of non-voting common stock, the bank saidTuesday.

This recapitalization will increase the bank's Tier 1 LeverageRatio to 15.2%, providing the needed funds to solidify the bank'scapital structure and support future growth, according to PanAmerican Bank.

This unique stock offering was subscribed to by a number of PanAmerican's peers including:

• Banc of California, National Association
• BBCN Bank
• Cathay General Bancorp
• Commercial Bank of California
• CTBC Bank Corp.
• Grandpoint Bank
• Hanmi Bank
• Heritage Oaks Bancorp
• HomeStreet Bank
• MUFG Union Bank, N.A.
• Pacific Premier Bank
• Pacific Western Bank
• Preferred Bank
• Provident Savings Bank, FSB
• Western Alliance Bank
• Wilshire Bank

“As we celebrate our 50th year in banking, we are very excitedabout raising fresh capital and re-launching our bank,” said MonaBanuelos, trustee of the Banuelos Family Trust and a long-timedirector of the bank. “My mother founded this bank with the dreamof providing vital services to our under-served communities.”

The Banuelos Family Trust remains the largest shareholder of PanAmerican Bank, Banuelos said.

Concurrent with the recapitalization, the bank's board ofdirectors entered into a six-month contract with Robb Evans, of REAConsulting LLC, to act as interim CEO. Evans, a banking industryveteran and past president of the California Bankers Association,will initiate a search for a new president, a position that hasbeen vacant since April of this year. The board also elected Evansas a director and chairman of the board.

“It is rare that a group of bankers have rallied to save one ofits peers, especially a group as widespread and diverse as the 16banks that came together in this transaction,” said John Eggemeyer,board chairman of PacWest Bancorp and president/CEO of Castle CreekCapital LLC.