First Bancorp (FBNC) in Troy, N.C. and Community Financial Shares in Glen Ellyn, Ill. have completed capital raises.
The $3.3 billion-asset parent of First Bank said Friday it raised $33.8 million by selling common and preferred stock to institutional investors and plans to use the proceeds to bolster its capital reserves before it writes off troubled loans.
First Bancorp next month is planning to sell roughly $68 million of loans that face the prospect of default. The company also said it would write down by up to 30% roughly $38 million in foreclosed-upon real estate that the company also plans to sell.
"This capital raise and accelerated problem asset disposition are important steps forward for our company," Richard Moore, First Bancorp's chief executive, said in a news release. "We are now better positioned to grow and undertake new initiatives."
First Bancorp said it expects to record an after-tax charge of between $28 million and $32 million in the fourth quarter.
Community Financial, the $334 million-asset parent of Community Bank-Wheaton/Glen Ellyn, announced Friday it has raised $24 million via the sale of common and preferred stock.
The company said it would use proceeds to repay the company's indebtedness to a third-party bank and to redeem $6.9 million from the Treasury Department that Community Financial received in May 2009 under the Troubled Asset Relief Program.
Scott Hamer, Community Financial's chief executive, said in a news release the funds raise would "improve the capital position of the company and the bank."
