FNBH Bancorp (FNHM) in Howell, Mich., plans to raise up to $1.5 million in a rights offering.

The $311 million-asset company will sell up to 2.3 million shares of common stock at 70 cents each, according to a Friday regulatory filing. Shareholders will be allowed to buy up to six shares of common stock for each share owned as of Jan. 8.

FNBH said it plans to use a portion of the proceeds to boost capital. The company’s First National Bank in Howell is required to maintain a minimum 8.5% Tier 1 leverage ratio and an 11% total risk-based capital ratio under an October 2013 consent order from the Office of the Comptroller of the Currency.

FNBH raised $17.5 million in a private placement in December, allowing it to increase its Tier 1 leverage ratio to 8.67% and its total risk-based capital ratio to 14.57%. The company predicts that it will need to provide roughly $430,000 to the bank in the first quarter to continue to meet the minimum capital ratios.

FNBH may also use some of the proceeds from the offering for holding company expenses or future bank contributions, the filing said.

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.