Codorus Valley Bancorp in York, Pa., plans to sell $30 million of stock to fund its exit from the Small Business Lending Fund program.
The $1.4 billion-asset company plans a public offering of its common stock and it will price the offering later this week, said Larry Miller, chief executive.
Codorus plans to use the proceeds to redeem $12 million of outstanding preferred stock in the SBLF program. The redemption will make Codorus the latest bank to exit the program ahead of the dividend rate hike to 9% from 1% scheduled next year.
Codorus entered the SBLF program in August 2011, initially issuing $25 million in preferred stock.
Codorus also plans to use the proceeds for general corporate purposes, which may include holding company level investments; capital support for its bank subsidiary, PeoplesBank; asset and deposit growth, merger activity and to reduce or refinance existing debt.
Sandler O'Neill and Janney Montgomery Scott are financial advisers. Rhoads & Sinon is legal counsel.