Huron Valley State Bank in Milford, Mich., plans to raise as much as $5 million to expand its two-branch business.

The $113 million-asset bank will use the proceeds to fund loans and perhaps buy discounted branches from larger banks that have been consolidating retail networks, Crain's reported Sunday.

The bank plans to raise the capital through a sale of stock, debt or a combination of the two, Jack Shubitowski, chief executive, told Crain's. Huron Valley will finalize its capital-raise plan by the end of the year.

Huron has formed a holding company, Huron Valley Bancorp., through which it will raise capital. The holding company will help Huron Valley increase its Tier 1 capital ratio and borrow with more flexibility, Shubitowski said.

Huron Valley did not return calls seeking comment.

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