Morris State Bancshares, Inc. Issues $15 Million of 5.25% Fixed to Floating Rate Subordinated Notes Due 2030
July 27, 2020 at 09:43 am EDT
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On July 22, 2020, Morris State Bancshares, Inc. has completed the issuance of a private placement of $15 million of 5.25% fixed to floating rate subordinated notes due 2030 to certain qualified institutional buyers and accredited investors. The Notes are unsecured and have a ten-year term, maturing July 22, 2030, and will bear interest at a fixed annual rate of 5.25%, payable quarterly in arrears, for the first five years of the term. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to three-month LIBOR plus 492 basis points, payable quarterly in arrears. The Notes have been structured to qualify as Tier 2 capital for MBLU for regulatory capital purposes. MBLU intends to use the net proceeds of the offering to supplement the capital of Morris Bank, its wholly owned subsidiary, and for general corporate purposes.
Morris State Bancshares, Inc. is a bank holding company for Morris Bank (the Bank). The Bank provides a variety of financial services to individuals and small businesses through its offices in middle Georgia. The Bank offers a full range of commercial and personal loan products. The Bank makes loans to individuals for purposes, such as home mortgage financing, personal vehicles and various consumer purchases and other personal and family needs. The Bank makes commercial loans to businesses for purposes, such as providing equipment and machinery purchases, commercial real estate purchases and working capital. The Bank offers a full range of deposit services that are available from financial institutions, including negotiable order of withdrawal (NOW) accounts, demand, savings, and other time deposits. In addition, the Bank also offers retirement accounts, such as individual retirement accounts. The Companyâs wholly owned subsidiaries include the Bank and IMOR Properties LLC.
MORRIS STATE BANCSHARES, INC. 
