Independent Bank (IBCP) in Ionia, Mich., has raised $89 million as part of a plan to exit the Troubled Asset Relief Program.

The $2.1 billion-asset company said Wednesday that it sold 11.5 million shares of common stock at $7.75 each. The underwriters, Keefe, Bruyette & Woods, Sandler O'Neill and Boenning & Scattergood, can buy another 1.7 million shares within the next 30 days, Independent said.

Independent and the Treasury Department agreed last month that the bank would pay $81 million to retire its Tarp stock, unpaid dividends and warrant. Independent received $72 million through the program in December 2008. The company plans to use the remaining proceeds for general corporate purposes.

In December 2012, Independent sold 21 branches, $405 million in deposits and $44 million in loans to Chemical Financial (CHFC) in Midland, Mich.

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.