Security Bank Corp. of Macon, Ga., announced Friday that it has raised $28 million in a stock offering and plans to use the proceeds to reduce its borrowings and to maintain healthy capital levels at its bank subsidiaries.
On Feb. 11 the $2.8 billion-asset Security launched a rights offering open only to Security shareholders, with a goal of selling 5.3 million shares, at $6.58 each, for a total of $35 million. Though it fell $7 million short of that goal, receiving subscriptions for 4.3 million shares, Lorraine Miller, Security's senior vice president for investor relations, said the company was pleased with the response.
"Given the volatility in the market, we can't be anything but pleased," Ms. Miller said in a brief interview Friday.
She added that the company has no plans to extend the rights offering.
All of Security's senior management and directors subscribed to buy shares in the rights offering. The company also said that two shareholders combined to subscribe for nearly 1.6 million of the shares.
Security lost $6.9 million last quarter, mainly because of mounting losses in the construction and development portfolios at some of its six subsidiary banks.
The credit-quality problems have punished Security's stock, which is down about 66% in the last year. In late trading Friday, the stock was down 3.3% from Thursday's closing price, to $6.71 a share.
