Touchstone Bankshares Announces Completion of Private Placement of Subordinated Notes Due 2032

Rhea-AI Summary

Touchstone Bankshares, Inc. (OTC Pink: TSBA) has successfully closed a private placement of $10.0 million in subordinated notes due January 30, 2032. The notes have a fixed interest rate of 4.00% for the first five years, transitioning to a variable rate thereafter. Proceeds from this offering will support the bank's growth and strategic initiatives. The company has reported solid growth across its operational footprint, anticipating continued positive trends. D.A. Davidson & Co. acted as the placement agent for this offering.

Positive

• Successfully raised $10.0 million through private placement of subordinated notes.
• Proceeds will support growth and strategic initiatives.
• Company expects continued solid growth across its footprint.

Negative

• None.

PRINCE GEORGE, Va., Jan. 19, 2022 /PRNewswire/ -- Touchstone Bankshares, Inc. (the "Company") (OTC Pink: TSBA), the holding company for Touchstone Bank, announced today the closing of its private placement of $10.0 million of subordinated notes due 2032 (the "Notes"). 

"We are very pleased with the offering results and plan to use the proceeds to support our growth and strategic initiatives. We are experiencing solid growth across the entire footprint and expect this trend to continue," said James Black, President & CEO.

About the Notes

The Notes have a maturity date of January 30, 2032, and carry a coupon of 4.00% for the first five years. Thereafter, the Notes will pay interest at the 3-month Secured Overnight Financing Rate plus 263 basis points, resetting quarterly. The Company is entitled to redeem the Notes without penalty, in whole or in part, on any interest payment date on or after January 30, 2027, or at any time, in whole but not in part, upon certain other specified events. The Notes have been structured to qualify as Tier 2 capital for regulatory purposes at the holding company.

D.A. Davidson & Co. served as the sole placement agent for the offering.  Williams Mullen served as legal counsel to the Company and Troutman Pepper Hamilton Sanders LLP served as legal counsel to the placement agent.

About Touchstone Bankshares, Inc.

Touchstone Bankshares, Inc. is the bank holding company for Touchstone Bank. The majority of the Company's business activities are conducted through Touchstone Bank. Touchstone Bank is a full-service community bank headquartered in Prince George, Virginia. The Bank has ten branches serving Southern and Central Virginia and two branches and a loan center serving Northern North Carolina. Visit www.touchstone.bank for more information.

Forward-Looking Statements

In addition to historical information, this press release may contain certain forward-looking statements. For this purpose, any statement that is not a statement of historical fact may be deemed to be a forward-looking statement. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, and actual results could differ materially from historical results or those anticipated by such statements.  Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to, the impacts of the ongoing COVID-19 pandemic; changes in interest rates and general economic conditions; the legislative/regulatory climate; monetary and fiscal policies of the U.S. Government; the quality or composition of the loan or investment portfolios; demand for loan products; deposit flows; competition; demand for financial services in the Company's market area; mergers, acquisitions and dispositions; implementation of new technologies and the ability to develop and maintain secure and reliable electronic systems; and tax and accounting rules, principles, policies and guidelines.

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SOURCE Touchstone Bankshares, Inc.

FAQ

What is the recent news about Touchstone Bankshares (TSBA)?

Touchstone Bankshares announced the closing of a private placement of $10.0 million subordinated notes due 2032 on January 19, 2022.

What are the terms of the subordinated notes issued by Touchstone Bankshares (TSBA)?

The subordinated notes have a maturity date of January 30, 2032, with a fixed interest rate of 4.00% for the first five years.

How will Touchstone Bankshares use the $10 million raised from the notes?

The proceeds from the offering will be used to support the company's growth and strategic initiatives.

Who was the placement agent for Touchstone Bankshares' private placement?

D.A. Davidson & Co. served as the sole placement agent for the offering.

When can Touchstone Bankshares redeem the subordinated notes without penalty?

The company can redeem the notes without penalty on any interest payment date on or after January 30, 2027.