York Township-based Codorus Valley Bancorp Inc. is looking to raise $30 million in capital through the sale of new stock.
The holding company for PeoplesBank announced it plans to price a public offering of more than 1.5 million shares at $19.75, which would raise approximately $30 million.
The window for the sale is expected to close Tuesday.
Codorus Valley President and CEO Larry Miller said he could not comment on the stock sale while it was in progress.
Of the $30 million in capital the company expects to raise, it will spend $12 million in paying off outstanding shares used for the U.S. Department of the Treasury’s Small Business Lending Fund Program.
The majority of the remaining funds will be used for general corporate purposes, which could include holding company-level investments, providing capital for PeoplesBank, supporting asset and deposit growth, debt reduction and acquisitions.
The company, however, said there are no current plans for any acquisitions.
While still considered healthy and far above the federally mandated levels, Codorus Valley’s capital ratios have fallen since the end of 2014 when its Tier 1 risk-based capital ratio was at 13.24 percent. It had fallen to 12.15 by Sept. 30.
At the current rates, it is still far above what the Federal Deposit Insurance Co. considers “well capitalized.”
The capital ratios dipped at least partly because of the $14.4 million in capital Codorus Valley expended in January to acquire Madison Bancorp Inc. in Maryland.
Codorus Valley has about $1.4 billion in assets and trades its shares on the NASDAQ exchange at the ticker symbol CVLY.