New Century Lacking Start-Up Capital

Organizers of a new Spokane Valley bank have modified their stock offering to allow investors from outside the state of Washington to buy shares.

President Robert McKean said the original offering in New Century Financial Corp. attracted substantial interest from Idaho residents, but securities laws prevent them from investing in a bank holding company.

Modifying the offering to allow the purchase of stock in New Century Bank itself eliminates that problem, he said.

New Century backers have been trying to raise a minimum $5 million since December. A February opening of a new facility on East Mission was anticipated.

The structure, which will also house other tenants, is ready, but McKean said interior work on the bank will not go forward until the offering clears escrow.

“Raising capital has been much more difficult than I anticipated,” he said. “Once we can break escrow it can go pretty rapidly.”

McKean said he is working with a group of investors who together could take the offering up to its $6.25 million limit, although some may drop out.

The securities appeal increased after Judi Williams, vice-cairman of Telect Inc., and Tim Murphy, president of Central Pre-Mix Products Co., bought into the venture, he said.

Reaching the minimum will likely take another month, he said. The bank could be ready to open two months later.