Summit Bank Group, Inc. (the “Company”) (OTC Pink: SBKO), the parent company of Summit Bank (the “Bank”), today announced the closing of its private placement of $20.0 million aggregate principal amount of its 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 (the “Notes”). The Notes will mature on December 1, 2031, and will initially bear interest at a rate equal to 3.25% per annum from and including the issue date to, but excluding, December 1, 2026, payable semiannually in arrears. Thereafter, the Notes will bear interest at a floating rate per annum equal to Three-Month Term SOFR, plus a spread of 217 basis points, payable quarterly in arrears. The Notes are intended to qualify as Tier 2 capital for regulatory purposes.
“We are very pleased with the excellent result of our sub-debt raise,” said Craig Wanichek, President and Chief Executive Officer. “There was strong interest from the market as indicated by the rate that we were able to secure for a non-rated community bank offering. It further validates the consistent earnings power of our Bank and the strength of the communities in which we do business. This offering provides us with low-cost capital to support our balance sheet growth plans.”
The Company intends to use the net proceeds from this offering for general corporate purposes, the maintenance of required regulatory capital at the Bank, and to support the Company’s and Bank’s future growth.
D.A. Davidson & Co. served as the sole placement agent for this offering. Miller Nash LLP served as counsel to the Company. Sheppard, Mullin, Richter & Hampton LLP served as counsel to the placement agent.
Summit Bank, with offices in Eugene/Springfield, Central Oregon and the Portland Metropolitan area, specializes in providing high-level service to professionals and medium-sized businesses and their owners. Summit was recognized in 2021 as the Top Small Business Administration (SBA) Community Bank Lender in the State of Oregon.
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Contacts
Craig Wanichek, President & Chief Executive Officer 541-684-7500
