Community Central Bank Corp. in Mount Clemens, Mich., said Thursday that it had raised $2.7 million in fresh capital.
The investment was made through a private placement involving local investors who bought convertible perpetual preferred stock. Each preferred share carries a 10-year warrant for 20 shares of common stock priced at $5 per share. Community Central's shares were trading at $1.42 at midday Thursday.
The $550 million-asset company also benefited from a $1 million private placement in an October transaction with the same terms. And it raised $3.5 million on preferred stock sales in December 2008 and last January.
The company's Community Central Bank unit was well capitalized at Sept. 30, with a total risk-based capital ratio of 10.3%. However, it has had to deal with prolonged and growing credit problems. At Sept. 30, 7.34% of its loans were noncurrent, up from 5.5% a year earlier.
