PBCO Financial Corporation announced that it has completed a private placement of $25 million in fixed-to-floating rate subordinated notes due March 15, 2032 to certain qualified buyers and accredited investors. The Company intends to use the net proceeds for general corporate purposes, including support for continued organic growth and strategic initiatives. The Notes are structured to qualify as Tier 2 capital for the Company for regulatory purposes and will carry a fixed rate of 3.875% until March 15, 2027.

Thereafter, the Notes will pay interest at a floating rate, reset quarterly, equal to the then current three-month SOFR plus 242 basis points. The subordinated notes are redeemable by the Company at its option, in whole or in part, on any interest payment date on or after March 15, 2027, or at any time, in whole or in part, upon certain other specified events prior to the Notes' maturity on March 15, 2032.