First US Bancshares, Inc. Announces Completion Private Placement of $11.0 Million in Aggregate Principal Amount of Fixed-To-Floating Rate Subordinated Notes Due October 1, 2031
October 05, 2021 at 02:00 am IST
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First US Bancshares, Inc. announced the completion of a private placement of $11.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due October 1, 2031 (the “Notes”). The Notes were sold to certain institutional accredited investors and qualified institutional buyers on October 1, 2021. The Notes are intended to qualify as Tier 2 capital of the Company for regulatory capital purposes. FUSB expects to use the net proceeds for general corporate purposes, which may include the repurchase of the Company’s common stock, and to support organic growth plans, including the maintenance of capital ratios. The Notes mature on October 1, 2031. The Notes will initially bear interest at a rate of 3.50% per annum, payable semi-annually in arrears, to, but excluding October 1, 2026 (or an earlier redemption date). From October 1, 2026 to, but excluding the maturity date (or an earlier redemption date), the interest rate will be reset quarterly to a benchmark interest rate per annum which, subject to certain conditions provided in the Notes, will be equal to the then current three-month term Secured Overnight Financing Rate (“SOFR”) plus 275 basis points, with interest during this period payable quarterly in arrears. The Notes are redeemable by the Company, in whole or in part, at the Company’s discretion, on or after October 1, 2026 on any interest payment date. Prior to October 1, 2026, the Notes are redeemable by the Company only upon the occurrence of certain events. Any redemption of the Notes is subject to certain conditions.
First US Bancshares, Inc. is a bank holding company. The Company operates one banking subsidiary, First US Bank, an Alabama banking corporation (the Bank). The Bank conducts a general commercial banking business and offers banking services, such as demand, savings, individual retirement account and time deposits, personal and commercial loans, safe deposit box services and remote deposit capture. The Bank provides a range of commercial banking services to small-and medium-sized businesses, property managers, business executives, professionals and other individuals. The Bank also performs indirect lending through third-party retailers and conducts this lending in 17 states, including Alabama, Arkansas, Florida, Georgia, Indiana, Kansas, Kentucky, and others. It operates and serves its customers through 15 full-service banking offices located in Birmingham, Butler, Calera, Centreville, and others. It also has loan production offices in Mobile, Alabama and the Chattanooga, Tennessee area.
First US Bancshares, Inc. Announces Completion Private Placement of $11.0 Million in Aggregate Principal Amount of Fixed-To-Floating Rate Subordinated Notes Due October 1, 2031