Carolina Premier Bank announced Monday it has raised about $8 million in a non-public offering of common stock and will use the proceeds to retire preferred shares held by the U.S. Treasury Department as well as fund its growth plans.
The Ballantyne-based community bank said the proceeds will retire $6.2 million in shares the U.S. Treasury purchased through a 2010 federal program known as the Small Business Lending Fund. The program, which pumped capital into participating community banks, was designed to boost their lending to small businesses following the financial crisis.
Carolina Premier President David Barksdale said his bank plans to use proceeds left over after retiring the preferred shares to fund additional lending into the next several years. The bank said it sold the 1.2 million shares at $7 each for gross proceeds of about $8.5 million before expenses.
Carolina Premier is the 23rd largest bank by deposits in the Charlotte metropolitan area, according to federal data from June.
It is one of four community banks whose holding companies are headquartered in Charlotte.
A recently as last year, Carolina Premier’s holding company, Premara Financial, was based in Washington, D.C. That address has since shifted to Ballantyne as Carolina Premier prepares to vacates the D.C. market by the end of this year.
The D.C.-based holding company was launched in 2011 as part of an expansion strategy.
Barksdale, who is also CEO, joined the bank earlier this year from Greensboro’s NewBridge Bancorp, where he was chief strategy officer. He replaced John Kreighbaum, who announced last year that he was stepping down as head of Carolina Premier, which he helped launch in 2007.
In the Charlotte metropolitan area, Carolina Premier employs 35 to 40 people, Barksdale said.