BV Financial, Inc. (OTCPK:BVFL) announced a private placement of 4.875% fixed-to-floating rate subordinated notes for gross proceeds of $35.0 million on October 21, 2020. The transaction included participation from certain qualified institutional buyers and accredited institutional investors. The notes will have a maturity date of December 30, 2030 and initially bear interest, payable semi-annually, at a fixed annual rate of 4.875% per annum until December 30, 2025. Commencing on that date, the interest rate applicable to the outstanding principal amount due will be reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 472 basis points, payable quarterly until maturity. The company may redeem the notes at par, in whole or in part, at its option, anytime beginning on December 30, 2025.