Community Financial Corp. in Waldorf, Md., raised $23 million from a debt offering.

The $1 billion-asset company issued the unsecured, fixed-to-floating-rate notes on Tuesday and closed the offering Friday. The notes are due in 2025.

Community plans to use the net proceeds from this offering to redeem $20 million of outstanding preferred stock issued under the Small Business Lending Fund program. The SBLF program provides capital to community banks to encourage small-business lending.

The remaining funds will contribute capital to the company's subsidiary, Community Bank of the Chesapeake, and support organic growth and future acquisitions.

Keefe, Bruyette & Woods served as the sole book-running manager.

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