Porter Bancorp in Louisville, Ky., used part of $5 million it raised in a private placement to become current on interest payments on some debt holdings.
The $949 million-asset company said in a press release Monday that it sold 2.9 million voting shares and 1.1 million non-voting shares at $1.25 a share.
Porter said it used about $2.8 million of the proceeds to pay dividends on junior subordinated debt tied to its outstanding trust-preferred securities. Porter had been in deferral on the dividend payments since the end of 2011. The deferral period was set to expire during the third quarter.
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Porter Bancorp in Louisville, Ky., has Edmond Seifried to its board. Seifried, 68, is executive director of the Sheshunoff Affiliation Program, which provides education and an idea exchange to community bankers.
September 24 -
Porter Bancorp in of Louisville, Ky., has adopted a plan to preserve the value of its deferred tax benefits, designed to allow the company to continue the use of net operating loss carryforwards.
June 26 -
Tidelands Bancshares in Mount Pleasant, S.C., has been declared in default on $18.3 million of trust-preferred securities.
March 15
Porter, as of Dec. 31, had $23.5 million in aggregate obligations tied to the principal and unpaid interest on the junior subordinated debt.
The company said the remaining proceeds will be used for general corporate purposes and to support its bank.
Porter's chief executive, John Taylor, and two directors, Bradford Ray and James Parsons, purchased stock in latest sale.
Frost Brown Todd was legal counsel to Porter on the private placement.