On the Corporation completed the issuance of million in aggregate principal amount of fixed-to-floating rate subordinated notes (the "Notes") due in a private placement transaction to institutional accredited investors.

 

The net proceeds of the offering, which totaled million, increased Tier regulatory capital and the Corporation intends to use the net proceeds for general corporate purposes including share repurchases, possible acquisitions and organic growth. The debt issuance costs are included as a direct deduction from the debt liability and the costs are amortized to interest expense using the effective interest method.

 

The Notes bear interest at an annual fixed rate of from the date of issuance until with the interest payment on the Notes occurring on and semi-annually thereafter each and through Thereafter, the Notes will bear interest at a variable rate that will reset quarterly to a level equal to the then-current -month LIBOR rate plus until or any early redemption date, payable quarterly on and of each year. Beginning with the interest payment date of and on any scheduled interest payment date thereafter, the Corporation has the option to redeem the Notes in whole or in part at a redemption price equal to of the principal amount of the redeemed Notes, plus accrued and unpaid interest to the date of the redemption.

 

In conjunction with the issuance, the Corporation engaged the Kroll Bond Rating Agency (“KBRA”) to assign a senior unsecured long-term debt rating, a subordinated debt rating and a short-term rating to the Corporation. As a result of their evaluation, KBRA assigned the Corporation a senior unsecured debt rating of A-, a subordinated debt rating of BBB+ and a short-term debt rating of