First Internet Bancorp Completes Private Placement of $60 Million of 3.75% Fixed-To-Floating Rate Subordinated Notes Due 2031
August 16, 2021 at 05:18 pm EDT
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First Internet Bancorp announced the completion of a private placement of $60.0 million in aggregate principal amount of 3.75% fixed-to-floating rate subordinated notes due 2031 (the “Notes”). The Notes will bear interest at a fixed rate of 3.75% per annum from August 16, 2021 to September 1, 2026, with interest during this period payable semi-annually in arrears. From September 1, 2026 to the stated maturity date or early redemption date, the interest rate will be reset quarterly to an annual floating rate equal to the then current three-month term Secured Overnight Financing Rate (SOFR) plus 311 basis points, with interest during this period payable quarterly in arrears. The Notes are redeemable by the Company, in whole or in part, on or after September 1, 2026, and at any time upon the occurrence of certain events. The Notes have been structured to qualify as Tier 2 capital for the Company for regulatory capital purposes. Piper Sandler & Co. acted as placement agent for the Notes offering. The Company expects to use the net proceeds of the private placement for general corporate purposes, which may include the redemption of currently outstanding indebtedness.
First Internet Bancorp is a financial holding company, which is engaged in conducting its primary business activities through its wholly owned subsidiary, First Internet Bank of Indiana (the Bank), an Indiana chartered bank. The Bank offers a range of commercial, small business, consumer and municipal banking products and services. The Bank conducts its consumer and small business deposit operations primarily through digital channels on a nationwide basis and have no traditional branch offices. Its consumer lending products are primarily originated on a nationwide basis through relationships with dealerships and financing partners. The Bank's commercial banking products and services are delivered through a relationship banking model and include commercial and industrial (C&I) banking, construction and investor commercial real estate, single tenant lease financing, public finance, healthcare finance, small business lending, commercial deposits, and treasury management.
FIRST INTERNET BANCORP 
