FNS Bancshares, Inc. (OTCPK:FNSB) announced a private placement of fixed-to-floating rate subordinated notes due 2030 for gross proceeds of $10,000,000 on June 30, 2020. The transaction included participation from 15 investors. The notes will initially bear interest at 5% per annum for the first five years after issuance. From July 1, 2025 through June 30, 2030, or up to an early redemption date, the interest rate will reset quarterly to an interest rate per annum equal to three-month SOFR plus 486 basis points. The notes can be redeemed by the company beginning on June 30, 2025 until maturity on June 30, 2030. The notes have been structured to qualify as Tier 2 capital under bank regulatory guidelines. The company will issue securities pursuant to exemption provided under Regulation D.