First Business Financial Services, Inc. announced the completion of a private placement of $15.0 million in aggregate principal amount of 8.0% Subordinated Debentures due September 29, 2033 (the ?Notes?) to certain of the Bank?s local community investors and other "accredited investors? (as defined under applicable securities regulations) on September 29, 2023. The Company intends to use the net proceeds of the offering for general corporate purposes, including support of the Bank?s growth strategy.

The Notes were structured to qualify as Tier 2 capital for regulatory risk-based capital purposes and bear interest at a fixed annual rate of 8.0%, payable quarterly, in arrears, beginning December 15, 2023. The Notes? maturity date is September 29, 2033.

The Company is entitled to redeem the Notes, in whole or in part, at any time after September 29, 2028, and to redeem the Notes at any time in whole upon certain other events, at a redemption price equal to 100% of the outstanding principal amount of the Notes to be redeemed plus any accrued and unpaid interest up to, but excluding, the redemption date.