In a bid to get its bank unit adequately capitalized, Horizon Bancorp. Inc. in Bradenton, Fla., is trying to raise $5 million in a private placement of convertible preferred stock.

The $207 million-asset company said in a Securities and Exchange Commission filing this week that it has $405,000 in subscriptions for the offering but that it must raise at least $3.5 million to complete the deal.

The offering is to expire at the end of the month but could be extended to Dec. 31, according to the filing. The stock is being offered at $1,000 per share and carries a 7% dividend.

The company said that raising $4.2 million of capital would be enough to satisfy a dispute with the Federal Reserve Board involving the proper amount of its allowance for loan losses and to return its bank unit to adequately capitalized status.

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.