Valley Republic Bancorp (OTCPK:VLLX) announced a private placement of fixed-to-floating rate subordinated notes due September 30, 2035 to certain institutional and private accredited investors for the gross proceeds of $20,000,000 on August 27, 2020. The notes were issued at par. The note bears an interest of 5% per annum until September 30, 2025, payable quarterly in arrears. The notes will bear a floating rate of interest equal to 3-month London interbank offered rate + 4.90% until the notes mature, or such earlier redemption date. The notes will be redeemable by the company, in whole or in part, on or after August 27, 2025, upon proper notice being given by the company to the holders. Any redemption will be at a redemption price equal to 100% of the principal amount of notes being redeemed, plus accrued and unpaid interest. The notes are not subject to redemption at the option of the holders. The company is issuing securities pursuant to exemption provided under Regulation D. The minimum investment accepted from any outside investor is $250,000.