Farmers & Merchants Bank (FMBM) in Timberville, Va., plans a preferred stock offering to raise $9.5 million.
F&M seeks to issue 400,000 preferred shares at $25 apiece, according to a filing Monday with the Securities and Exchange Commission. The offering is expected to be completed by Sept. 30.
The $566 million-asset company plans to use the proceeds to redeem, repurchase or exchange the bank's subordinated debt subject to regulatory approval, the filing says.
The Series A Preferred Stock would not be listed for trading on any stock exchange. The annual dividend on each share would be determined by the board and paid quarterly in cash. The preferred stock may be converted to common stock three years from the issue date.
FIG Partners and Compass Point Research & Trading are the stock-sale agents.