First Keystone Corporation Issues $25 Million in Subordinated Notes
December 11, 2020 at 10:04 am EST
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First Keystone Corporation announced the completion of its private placement of $25 million of its 4.375% Fixed to Floating Rate Subordinated Notes (the “Notes”) to certain qualified institutional buyers and institutional accredited investors. The Notes will have a maturity date of December 31, 2030 and initially bear interest, payable semi-annually, at a fixed annual rate of 4.375% per annum until December 31, 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 secured overnight financing rate (SOFR) plus 411 basis points, payable quarterly until maturity. The Company may redeem and pay the Notes at par, in whole or in part, at its option, anytime beginning on or after December 31, 2025. The Notes are intended to qualify as Tier 2 capital for regulatory capital purposes for the Company. The Company intends to use the net proceeds from the private placement to continue to meet regulatory capital requirements, increase the regulatory lending ability of the Bank and support the Bank’s organic growth initiatives. Performance Trust Capital Partners, LLC served as sole placement agent for the offering. Bybel Rutledge, LLP served as legal counsel to First Keystone Corporation and Windels Marx Lane & Mittendorf, LLP served as legal counsel to Performance Trust Capital Partners, LLC.
First Keystone Corporation is a bank holding company. The Company operates, through its subsidiary, First Keystone Community Bank (the Bank), which has a commercial banking operation and a trust department as its lines of business. The Bank is a full-service commercial bank providing a range of services to individuals and small to medium-sized businesses in its Northeastern Pennsylvania market area. The Bankâs commercial banking activities include accepting time, demand and savings deposits and making secured and unsecured commercial, real estate, agricultural and consumer loans. Additionally, the Bank provides personal and corporate trust and agency services to individuals, corporations and others, including trust investment accounts, investment advisory services, mutual funds, estate planning, and management of pension and profit-sharing plans. The area served by the Bank includes a mix of rural communities, small to mid-sized towns and cities.
FIRST KEYSTONE CORPORATION 
