Horizon Bancorp. Inc. in Bradenton, Fla., is hoping a last-minute private placement will keep its critically undercapitalized bank from failing.

The $200 million-asset company said Monday in a Securities and Exchange Commission filing that it is "engaged in an urgent effort to raise the equity capital" it needs.

Horizon said it must raise at least $10 million. As of Monday it had $1.1 million of subscriptions, with directors expected to provide an additional $1.1 million.

Horizon plans to generate $1.3 million in cash from the sale of its main bank office.

It also has agreed to sell $10.25 million worth of its nonperforming loans at 68% of their book value.

The company's bank unit has been undercapitalized since August 2009. In early March the Federal Reserve gave the bank 45 days to become adequately capitalized or face seizure under a prompt corrective action directive.

More than 80 days have passed since the Fed order; Horizon said in the filing that it has consented to the appointment of a receiver.

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.