Tower Bancorp Inc. says it will offer up to $50 million in shares as it joins a number of other companies in recent months taking advantage of increased investor interest in the stock market to raise cash.
The bank holding company's assets have not suffered from many of the woes slamming the industry. Its net chargeoff rate for the most recent period was 0.06% of average loans.
The company's offering will increase its market capitalization by about 30%.
Underwriters have the option to buy up to an additional 15% of the total number of shares to cover excess demand.
Tower said it will use the proceeds for general corporate purposes, including contributing to its bank unit — which operates in Pennsylvania and Maryland — to support its lending and investing activities, repay debt and fund any acquisitions.
The company also raised cash this year by selling $9 million in subordinated notes. It contributed those proceeds to the bank unit as equity capital.
