Pinnacle Bankshares Corporation Enters into $8.0 Million in Aggregate Principal Amount of 5.25% Fixed-To-Floating Rate Subordinated Notes Due 2030
September 18, 2020 at 09:33 pm
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On September 18, 2020, Pinnacle Bankshares Corporation entered into a Subordinated Note Purchase Agreement with certain qualified institutional buyers and accredited investors (the “Purchasers”) pursuant to which the Company sold and issued $8.0 million in aggregate principal amount of 5.25% fixed-to-floating rate subordinated notes due 2030. The Notes will initially bear interest at 5.25% per annum, beginning September 18, 2020 to but excluding September 30, 2025, payable quarterly in arrears. From and including September 30, 2025 to but excluding September 30, 2030, or up to an early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 513 basis points, payable quarterly in arrears. Beginning on September 30, 2025 through maturity, the Notes may be redeemed, at the Company’s option, on any scheduled interest payment date. The Notes will mature on September 30, 2030. The Purchase Agreement contains certain customary representations, warranties and covenants made by the Company, on the one hand, and the Purchasers, severally and not jointly, on the other hand.
Pinnacle Bankshares Corporation is a bank holding company. The Company operates its business activities through its wholly owned subsidiary, First National Bank (The Bank). The Bank offers a range of commercial and retail banking products and services, including checking, savings and time deposits, individual retirement accounts, online banking, mobile banking, remote deposit capture, merchant bankcard processing, residential and commercial mortgages, home equity loans, consumer installment loans, agricultural loans, investment loans, small business loans, commercial loans, lines of credit and letters of credit. It also offers a full range of investment, insurance and annuity products. The Bank serves market areas consisting primarily of all or portions of the Counties of Amherst, Bedford, Campbell and Pittsylvania, and the Cities of Charlottesville, Danville and Lynchburg. The Company has over 18 branches. The Bankâs subsidiaries include FNB Property Corp. and First Properties, Inc.