United Bancorp, Inc. Completes Private Placement of $20 Million in Fixed-to-Floating Rate Subordinated Notes Due 2029
May 14, 2019 at 02:00 pm EDT
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United Bancorp, Inc. announced that it has completed the private placement of $20 million in fixed-to-floating rate subordinated notes due 2029. The Notes have been structured to qualify as Tier 2 capital under bank regulatory guidelines, and the proceeds from the sale of the Notes will be utilized to support regulatory capital ratios and for general corporate purposes, including growth initiatives at Unified Bank. The Notes will initially bear interest at 6.00% per annum, beginning May 15, 2019 through May 14, 2024, payable semi-annually in arrears. From May 15, 2024 through May 14, 2029, or up to an early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month LIBOR plus 362.5 basis points, payable quarterly in arrears. Beginning on May 15, 2024 through maturity, the Notes may be redeemed, at United Bancorp's option, on any scheduled interest payment date. The Notes will mature on May 15, 2029.
United Bancorp, Inc. is a bank holding company. The Company has one wholly owned subsidiary bank, Unified Bank, Martins Ferry, Ohio (the Bank). The Bank serves customers in northeastern, eastern, southeastern and south-central Ohio and the Northern panhandle of West Virginia and is engaged in the business of commercial and retail banking in Belmont, Harrison, Jefferson, Tuscarawas, Carroll, Athens, Hocking, and Fairfield counties and the surrounding localities. The bank also operates in Marshall County West Virginia. The Bank provides a range of banking and financial services, which includes accepting demand, savings and time deposits and granting commercial, real estate and consumer loans. The Bank's loan portfolio includes commercial loans, commercial real estate loans, residential real estate loans and installment loans. The Bank conducts its business through its main office and standalone operations center in Martins Ferry, Ohio and about 18 branches located in the counties.