Sandy Spring Bancorp in Olney, Md., on Thursday announced pricing for a common stock offering expected to raise at least $87.7 million.

The $3.6 billion-asset company increased the offering from $83 million after the market closed on Wednesday. It plans to sell 6.5 million shares at $13.50 per share, a 9.4% discount to Wednesday's closing price.

If exercised, overallotments could increase the capital-raising effort by $13.1 million.

Sandy Spring said in a filing with the Securities and Exchange Commission that the proceeds could be used to make investments at the holding company level, provide capital to support its subsidiary, Sandy Spring Bank, make acquisitions or repay the Troubled Asset Relief Program.

At Dec. 31, Sandy Spring Bank was more than well capitalized, with a Tier 1 risk-based capital ratio of 10.6% and a total risk-based capital ratio of 13.2%. But noncurrent loans represented 5.63% of total loans, compared with 2.76% a year earlier.

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