Sturgis Bancorp, Inc. announced that it has received $15 million in funding
December 29, 2020
Share
Sturgis Bancorp, Inc. (OTCPK:STBI) announced a private placement of 5.0% fixed-to-floating rate subordinated notes due December 30, 2030 for gross proceeds of $15 million from various accredited investors on December 30, 2020. The price for the notes was 100% of the principal amount of the notes. The interest on the notes will accrue at a rate equal to 5% per annum from the original issue date to, but excluding, December 30, 2025, payable semi-annually in arrears, and a floating rate per annum equal to a benchmark rate, which is expected to be the Three-Month Term SOFR, plus a spread of 473 basis points from and including December 30, 2025 until maturity, payable quarterly in arrears. Beginning on December 30, 2025 through maturity, the Notes may be redeemed, at the Company's option, on any scheduled interest payment date. The company received funding pursuant to Regulation D.
Sturgis Bancorp, Inc. is the holding company for Sturgis Bank & Trust Company (Bank), and its subsidiaries Oakleaf Financial Services, Inc., Oak Mortgage, LLC, Ayres/Oak Insurance, and Oak Title Services. The Bank provides an array of trust, commercial and consumer banking services from banking centers in Sturgis, Bangor, Bronson, Centreville, Climax, Colon, Niles, Portage, South Haven, St. Joseph, Three Rivers and White Pigeon, MI. Oakleaf Financial Services, Inc., offers a range of investment and financial-advisory services. Oak Mortgage, LLC offers residential mortgages in all markets of the Bank. Ayres/Oak Insurance offers various competitive commercial and consumer insurance products. Oak Title Services offers commercial and consumer title insurance. The Bank offers a range of personal banking, business banking, Internet banking and wealth management services.