Porter Bancorp Inc. of Louisville, Ky., said Thursday that its shareholders approved several changes related to a stock conversion that will help complete two private placements totaling $31.3 million in capital.
In a complicated process, the changes essentially give shareholders the option to convert preferred stock and warrants into common stock and exercise their shares. This would ultimately allow Porter to issue up to 1.38 million shares of common stock and complete two previously announced private placements.
If all of the options are exercised, the $1.7 billion-asset company expects to raise more than $31 million in capital. Of that, $10 million would go to its subsidiary, PBI Bank. The bank had a total risk-based capital ratio of 14.21% as of June 30.
Porter Bancorp announced the proposed stock offerings in June and July. The first investment was $27 million from Patriot Financial Partners LP in Philadelphia and the second was from an unidentified institutional investor, for nearly $4.3 million.