Two community banks on Tuesday disclosed plans to raise capital by selling subordinated debt.
Community Financial in Waldorf, Md., issued $30 million in unsecured, fixed-to-floating-rate notes.
The $1 billion-asset company plans to use the proceeds to redeem $20 million in preferred stock issued to the Treasury Department through the Small Business Lending Fund program. The funds may also be used to support organic growth or future acquisitions.
The SBLF program provides capital to community banks to encourage small-business lending.
Additionally, Enterprise Bancorp in Lowell, Mass., has issued $15 million in fixed-to-floating-rate notes in a private placement to an unnamed investor.
The $1.9 billion-asset company intends to use the funds to pay off $10.5 million in trust-preferred securities, Chief Executive Jack Clancy said in a press release.