Communities First Financial Corporation Closes Private Placement Of Subordinated Notes

FRESNO, Calif., Nov. 03, 2020 (GLOBE NEWSWIRE) -- Communities First Financial Corporation (the “Company”) (OTCQX: CFST), the parent company of Fresno First Bank (the “Bank”), today announced the closing of its private placement of $30.0 million aggregate principal amount of its 4.25% Fixed-to-Floating Rate Subordinated Notes due 2030 (the “2030 Notes”) and $10.0 million aggregate principal amount of its 4.25% Fixed-to-Floating Rate Subordinated Notes due 2035 (the “2035 Notes”). The 2030 Notes will mature on November 15, 2030, and will initially bear interest at a rate equal to 4.25% per annum from and including November 3, 2020 to, but excluding, November 15, 2025, payable semiannually in arrears. Thereafter, the 2030 Notes will bear interest at a floating rate per annum equal to a benchmark rate, which is expected to be Three-Month Term Secured Overnight Financing Rate (“Three-Month Term SOFR”), plus a spread of 407 basis points, payable quarterly in arrears. The 2035 Notes will mature on November 15, 2035, and will initially bear interest at a rate equal to 4.25% per annum from and including November 3, 2020 to, but excluding, November 15, 2030, payable semiannually in arrears. Thereafter, the 2035 Notes will bear interest at a floating rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR, plus a spread of 370 basis points, payable quarterly in arrears. Both the 2030 Notes and the 2035 Notes are intended to qualify as Tier 2 capital for regulatory purposes.

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“We are very pleased with the results of our sub debt raise and would like to thank both the D.A. Davidson and Performance Trust teams for their support,” said Steve Miller, President and Chief Executive Officer. “It was encouraging to see the interest from the market and specifically in the rate we were able to secure for a non-rated community bank offering. It speaks to the earnings strength of our franchise. This raise will support our balance sheet growth plans and also further strengthen our payment business platform.”

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and ...

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