Highlands Bancorp in Vernon, N.J., has raised $8.5 million through a sale of common stock.

The $385 million-asset parent of Highlands State Bank said it sold 913,978 shares of the stock at $9.30 each, mostly to institutional investors.

"This new capital will be used to support organic growth opportunities in the markets we serve and further enhance the value of our franchise," Steven C. Ackmann, Highlands' president and CEO, said in a press release Friday. "Furthermore, the addition of premier institutional bank investors to our shareholder base will help to promote increased liquidity and financial sponsorship."

FIG Partners was the placement agent for the offering. Windels Marx Lane & Mittendorf and Cranmore, FitzGerald & Meaney advised Highlands.

In June, Highlands raised $7.5 million to exit the Small Business Lending Fund, using the proceeds from an October 2015 subordinated debt issuance to fund the redemption.

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