Northrim Bancorp, Inc. has completed a $60.0 million subordinated notes offering, with an aggregate principal amount of 6.875% fixed-to-floating rate subordinated notes due 2035. The notes will bear interest at a fixed annual rate of 6.875% for the first five years and will reset quarterly thereafter to the then current three-month SOFR rate plus 348 basis points.
The company intends to use the net proceeds from the private placement for general corporate purposes and to support regulatory capital ratios for growth initiatives. In connection with the issuance and sale of the notes, Northrim Bancorp, Inc. entered into a registration rights agreement with each of the purchasers of the notes.
Keefe, Bruyette & Woods, a Stifel company, served as the lead placement agent, while Hovde Group, LLC served as the co-placement agent for the offering. Hunton Andrews Kurth LLP served as legal counsel to the company, and Squire Patton Boggs (US) LLP served as legal counsel to the placement agents.
Northrim Bancorp, Inc. is the holding company of Northrim Bank, an Alaska-based community bank with 20 branches throughout the state. The bank differentiates itself with its detailed knowledge of Alaska’s economy and its "customer first service" philosophy. Northrim Funding Services, a division of the bank, operates a factoring and asset-based lending division in the state of Washington. Sallyport Commercial Finance, LLC, a specialty finance company, and Residential Mortgage, LLC, a regional home mortgage company, are wholly-owned subsidiaries of the bank.
The press release emphasizes that the notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
The completion of this subordinated notes offering is a strategic move by Northrim Bancorp, Inc. to bolster its regulatory capital and support its growth initiatives. As a result of these announcements, the company's shares have moved -1.3% on the market, and are now trading at a price of $25.05. If you want to know more, read the company's complete 8-K report here.
