HCSB Financial in Loris, S.C., is getting a new chief executive after a $45 million recapitalization led by Castle Creek Capital Partners.

HCSB, the parent of the $361 million-asset Horry County State Bank, said in a press release Thursday that a group of institutional and accredited investors, including a fund tied to Castle Creek, agreed to buy common and preferred stock in a transaction that is expected to close next month. Castle Creek, along with one or more other investors, will be allowed to appoint a representative to HCSB's board.

The company said it is planning to raise another $3 million through a public offering.

HCSB said it plans to use proceeds from the private placement to repurchase stock it issued to the Treasury Department under the Troubled Asset Relief Program at a 99% discount. The company will also repurchase trust preferred securities at a 90% discount. In addition, HCSB, under terms of a recent legal settlement, will pay an amount equal to 20% of principal to holders of its subordinated debt.

Some of the remaining funds will be used to recapitalize HCSB's bank, which will help the unit meet higher minimum capital ratios required by a consent order with regulators.

The company also announced that Jan Hollar will become its chief executive once the recapitalization closes. Hollar, who has been working with HCSB as a consultant since August 2014, was chief financial officer of Yadkin Financial in Statesville, N.C., from September 2009 to July 2014, when that company was sold to VantageSouth Bancshares.

Hollar will succeed Jimmy Clarkson, who has been HCSB's president and chief executive since the bank was formed in 1987.

"We are excited about the capital raise and our partnership with Castle Creek and our other investors," Hollar said in the release. "This capital raise significantly strengthens our balance sheet and will put us in a position soon to exit our written agreement and our consent order. We look forward to the financial and strategic flexibility this capital will provide us."

HCSB also disclosed that Jack McElveen had become its chief credit officer on Feb. 26, succeeding Glenn Bullard, who retired at the end of last year. McElveen recently served as chief credit officer at Palmetto Bank in Greenville, S.C.

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