Macatawa Bank Corp. in Holland, Mich., raised $10.2 million after completing a rights offering, bringing it very close to complying with an order to boost capital levels.

The $1.56 billion-asset company said late Thursday that it sold about 4.5 million shares of common stock at $2.30 each. The stock sold represented about 25% of the 17.8 million shares that were available under the rights offering, which ran from May 10 to June 7.

Macatawa said it will now sell an additional 4.5 million shares of stock to the public at the same price as the rights offering, with the potential of raising another $10.2 million. The company said in a press release that its board "did not expect that all shareholders would exercise their rights to purchase shares in the offering."

The company, which has been operating under a consent order since early 2010, said it believed the capital raised from the rights offering and subsequent public offering would allow it to exceed the capital requirements outlined in its agreement with regulators. As of March 31, Macatawa said it needed about $14 million in new capital to fully comply with the consent order.

At March 31, the company had a Tier 1 leverage ratio of 7.1% and a total risk-based capital ratio of 10.4%. The consent order requires it to raise those ratios to 8% and 11%, respectively.

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