First Resource Bank Completes $6 Million Subordinated Debt Offering

Rhea-AI Summary

First Resource Bank (OTCQX: FRSB) has successfully completed a $6 million private placement of subordinated notes to enhance regulatory capital ratios and retire existing debt. The notes, maturing on September 15, 2030, carry a fixed interest rate of 6.00% and are callable after September 15, 2025. This offering reflects investor confidence and aims to support the bank's strategic growth initiatives.

Positive

• Successfully raised $6 million through subordinated notes.
• New notes will enhance regulatory capital ratios.
• The offering reflects strong investor confidence in the bank.

Negative

• None.

EXTON, Pa., Sept. 17, 2020 /PRNewswire/ -- First Resource Bank (OTCQX: FRSB) announced the completion of its $6 million subordinated notes offering. Proceeds from the private placement of the notes will be utilized to support regulatory capital ratios and to retire existing subordinated debt previously issued at a rate of 6.50%.

The new notes have a maturity date of September 15, 2030 and carry a fixed rate of interest of 6.00%, with a callable date of September 15, 2025. These subordinated notes have been structured to qualify as Tier 2 capital for regulatory purposes.

"We are delighted to announce the successful completion of our subordinated debt offering," commented First Resource Bank President & CFO, Lauren Ranalli. "The positive response of our investors speaks not only to the attractive nature of this offering, but also the Bank's strength. This additional capital will allow us to further support the Bank's strategic growth initiatives and continue serving the financial needs of our community."

About First Resource Bank

About First Resource Bank First Resource Bank is a locally owned and operated Pennsylvania state-chartered bank, serving the banking needs of businesses, professionals and individuals in the Delaware Valley. The Bank offers a full range of deposit and credit services with a high level of personalized service. First Resource Bank also offers a broad range of traditional financial services and products, competitively priced and delivered in a responsive manner to small businesses, professionals and residents in the local market. For additional information visit our website at www.firstresourcebank.com. Member FDIC.

This press release contains statements that are not of historical facts and may pertain to future operating results or events or management's expectations regarding those results or events.  These are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934.  These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts.  When used in this press release, the words "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", or words of similar meaning, or future or conditional verbs, such as "will", "would", "should", "could", or "may" are generally intended to identify forward-looking statements.  These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are either beyond our control or not reasonably capable of predicting at this time.  In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the results discussed in these forward-looking statements.  Readers of this press release are accordingly cautioned not to place undue reliance on forward-looking statements.  First Resource Bank disclaims any intent or obligation to update publicly any of the forward-looking statements herein, whether in response to new information, future events or otherwise.          

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SOURCE First Resource Bank

FAQ

What is the significance of First Resource Bank's $6 million subordinated notes offering?

The offering enhances regulatory capital ratios and allows the bank to retire existing subordinated debt.

When do the newly issued subordinated notes mature?

The new subordinated notes mature on September 15, 2030.

What is the interest rate for the new subordinated notes of First Resource Bank?

The new subordinated notes carry a fixed interest rate of 6.00%.

When can the new subordinated notes be called?

The new subordinated notes can be called after September 15, 2025.

How does this subordinated notes offering impact First Resource Bank's growth?

The capital raised will support the bank's strategic growth initiatives.