United Community Banks Inc. said late Wednesday that it is raising $380 million through a private placement with an affiliate of Corsair Capital LLC and a group of institutional investors.

The Blairsville, Ga., company also said it would sell about $293 million in substandard and nonperforming loans during the second quarter as it attempts to move beyond issues with credit deterioration and a memorandum of understanding with its regulators.

Corsair and its limited partners agreed to buy about 22.5 of the $7.4 billion-asset company at $1.90 per share — a 22.5% premium to United Community's closing price of $1.53 a share Wednesday. United will sell common stock and convert preferred shares to common stock at the same price.

As part of the deal, Corsair can also appoint a member to the company's board.

In addition to the bulk loan sales United Community said it plans on selling about $142 million of foreclosed properties in the second and third quarters. The company estimated that after-tax charges from both sales would be $140 million to $155 million. This would lower the nonperforming assets to 1.1% compared to 4.3% of total assets at Dec. 31.

Corsair is no stranger to bank investments. In April 2008, the firm led a $7 billion investment in National City Corp. in Cleveland for $5 a share. PNC Financial Services Group Inc. bought the struggling company later that year for $2.23 a share but Corsair did not lose money on the investment because of a so-called "make-whole" provision outlined in the agreement.

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