PSB Holdings, Inc. announced a private placement of non-cumulative perpetual preferred stock for gross proceeds of $7,200,000 and subordinated debt for gross proceeds of $10,000,000; for aggregate gross proceeds of $17,200,000 on November 1, 2022. The transaction will include participation from local community members for subordinated debt. The perpetual preferred stock will pay a non-cumulative quarterly fixed dividend at an annual rate of 6.75% for the first five years and then floating at 90-day Secured Overnight Financing Rate plus 4.50% thereafter. The company retains the option to redeem the preferred stock in whole or in part beginning November 1, 2027. The notes will pay quarterly interest at an annual rate of 4.75% for the first five years and then floating at 90-day SOFR plus 2.00% thereafter. The subordinated debt will pay interest-only for the first five years and have an issuer option to redeem in whole or in part beginning November 1, 2027. The minimum investment accepted is $250,000.

On the same day the company received $4.8 million as subordinated debt and $7.2 million for preferred stock. The company raised preferred stock from 6 investors and subordinated debt from 8 investors pursuant to exemption provided under regulation D.