ECB Bancorp Inc. in Englehard, N.C., is planning to raise $75 million in a private stock offering and intends to use a portion of the funds to exit the Treasury Department's Troubled Asset Relief Program.

The $917 million-asset company said late Thursday that it would issue nearly 4.7 million shares, at $16 each, to two private-equity groups, Patriot Financial Partners LP and Endicott Management Co., and other investors. Upon completion of that transaction later this year, ECB intends to offer existing shareholders up to $10 million of common stock.

ECB, the parent of East Carolina Bank, said that it would apply a chunk of the toward redeem the $17.8 million of preferred shares and associated warrants owned by the Treasury and use the rest to beef up its capital position and support future growth.

ECB's shares soared on news of the private placement. In heavy trading, the stock was up 18% midday Friday, to $13.10.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.