Porter Bancorp in Louisville, Ky., used part of $5 million it raised in a private placement to become current on interest payments on some debt holdings.
The $949 million-asset company said in a press release Monday that it sold 2.9 million voting shares and 1.1 million non-voting shares at $1.25 a share.
Porter said it used about $2.8 million of the proceeds to pay dividends on junior subordinated debt tied to its outstanding trust-preferred securities. Porter had been in deferral on the dividend payments since the end of 2011. The deferral period was set to expire during the third quarter.
Porter, as of Dec. 31, had $23.5 million in aggregate obligations tied to the principal and unpaid interest on the junior subordinated debt.
The company said the remaining proceeds will be used for general corporate purposes and to support its bank.
Porter's chief executive, John Taylor, and two directors, Bradford Ray and James Parsons, purchased stock in latest sale.
Frost Brown Todd was legal counsel to Porter on the private placement.