Business
Peoples Financial Services Corp. Completes Private Placement of $33 Million in Subordinated Notes
SCRANTON, Pa., June 1, 2020 /PRNewswire/ -- Peoples Financial Services Corp. ("Peoples") (NASDAQ: PFIS), the bank holding company for Peoples Security Bank
About this update from Peoples Financial Services Corp.
[{"type":"text","content":"SCRANTON, Pa., June 1, 2020 /PRNewswire/ -- Peoples Financial Services Corp. (\"Peoples\") (NASDAQ: PFIS), the bank holding company for Peoples Security Bank and Trust Company, today announced that it has completed a private placement of $33 million in fixed-to-floating rate subordinated notes due 2030 (the \"Notes\"). The Notes have been structured to qualify as Tier 2 capital under regulatory guidelines, and the proceeds from the sale of the Notes will be utilized for general corporate purposes, which may include contribution to the Company's subsidiary, Peoples Security Bank and Trust Company.\n\n \n \n \n \n \n \n\n \nThe Notes will initially bear interest at a fixed annual rate of 5.375% until June 1, 2025, payable semi-annually in arrears. For the remainder of the term, the Notes, which mature on June 1, 2030, will bear interest at a floating annual rate that will reset quarterly to equal a benchmark rate, initially three-month LIBOR, plus 450 basis points, payable quarterly in arrears. The Company is entitled to redeem the Notes, in whole or in part, on or after June 1, 2025, and to redeem the Notes at any time in whole upon certain other specified events.\nThe Notes have not been registered under the Securities Act of 1933, as amended, or under the securities laws of any state, and the Notes may not be offered or sold absent registration or an applicable exemption from registration requirements. The Notes are not deposits and are not insured by the FDIC. This press release is for informational purposes only and does not constitute an offer to sell, or the solicitation of an offer to buy, any security.\nAbout Peoples: Peoples Financial Services Corp. is the parent company of Peoples Security Bank and Trust Company, a community bank serving Bucks, Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Schuylkill, Susquehanna, Wayne and Wyoming Counties in Pennsylvania and Broome County in New York through 29 offices. Each office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations and government entities. Peoples' business philosophy includes offering direct access to senior management and other officers and providing friendly, informed and courteous service, local and timely decision making, flexible and...