Citizens South Banking Corp. of Gastonia, N.C., has raised $15 million to help finance its takeover of the failed Bank of Hiawassee.

The company said Monday that it raised the additional capital in a private placement that was a mixture of $6.7 million in common stock priced at $4.50 per share, a 7% discount to Citizens South's stock price on Thursday, and $8.3 million in preferred stock that it will convert to common equity should shareholders vote to increase the number of shares outstanding.

Citizens South said it would schedule the vote in the second quarter.

The company acquired the $300 million-asset Bank of Hiawassee in Georgia on Friday from the Federal Deposit Insurance Corp., which increased Citizens South's assets by 38%, to $1.1 billion.

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