Waldorf, Md.-based Community Financial Corp. completed a private placement of $10.8 million of its common stock.

The company issued 312,747 common shares in the offering.

For shares issued to non-insiders of Community Financial, the number of common shares issued was determined based on a price of $34.28 per share, which represents the 30-day average closing price of the company's common stock ending Dec. 17, 2019. For company insiders, the amount of common stock issued was determined based on a price of $35.43 per share, which represents the consolidated closing bid price per share immediately preceding the time the company entered into a binding agreement to issue the securities. There were no underwriting discounts or commissions.

Proceeds from the private placement will be used as part of the overall redemption of the company's outstanding $23.0 million of 6.25% fixed- to floating-rate subordinated notes that are due on Feb. 15, 2025. Community Financial intends to use the proceeds to redeem a like amount of the subordinated notes on or after the date such notes first become callable on Feb. 15, 2020. It is currently seeking regulatory approval to redeem the notes, according to a news release.

To the extent the proceeds are not used to redeem the subordinated notes, the proceeds will be used for general corporate purposes.