Eagle Bancshares, a thrift, announced plans on Monday to offer $1.15 million of trust-preferred securities in the third quarter.
Proceeds would help shore up capital ratios and "support growth in loans and deposits" for its Tucker Federal Bank unit, the company said in a press release. The financing would also enable Eagle Bankshares to make additional investments.
In the last year small banks and thrifts have begun to issue trust- preferred securities-hybrid securities that enable financial institutions to raise regulatory capital cheaply.
Underwriters on the deal include Interstate/Johnson Lane Corp., Morgan Keegan & Co., and Sterne, Agee & Leach Inc.