Bank of the Carolinas (BCAF) in Mocksville, N.C., has raised $46 million through a private placement.

The $428 million-asset company said in a press release Wednesday that it sold about 458 million shares of newly issued common stock at 10 cents each to unnamed institutional and accredited investors.

Bank of the Carolinas said its plans to use roughly $35 million of the proceeds to inject capital into its bank. The capital will return the bank to well-capitalized status and satisfy a requirement of a 2011 consent order from the Federal Deposit Insurance Corp. and the state banking regulator.

The company also said it will use some of the proceeds to buy all preferred stock and other debt obligations outstanding, including preferred stock it issued the Treasury Department under the Troubled Asset Relief Program.

"The private placement is the culmination of four years of effort by many individuals working tirelessly on behalf of the company," Stephen Talbert, Bank of the Carolinas' chief executive, said in the release. "The capital raised in the private placement will enable Bank of the Carolinas to continue to fulfill its mission to provide banking services to the customers and communities it serves."

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