First Resource Bank in Exton, Pa., plans to raise $6 million through a combination of common stock and subordinated debt to raise funds to redeem most of its Small Business Lending Fund preferred shares.
The $180 million-asset bank received conditional regulatory approval to redeem $3.8 million, or 75%, of its outstanding preferred SBLF stock. The redemption is conditional on the bank raising $2 million in common stock and $4 million in subordinated debt.
"This balance of common equity and subordinated debt is the result of over a dozen capital models that were considered by the Board," Glenn Marshall, chief executive, said in a news release.
First Resource will issue 320,000 shares of common stock at $6.50 per share. The subordinated debt will consist of 6.5% notes.