Northrim Bancorp, Inc. has announced the successful completion of a $60.0 million subordinated notes offering. The company issued $60.0 million in aggregate principal amount of 6.875% fixed-to-floating rate subordinated notes due 2035 to certain qualified institutional buyers and institutional accredited investors.
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. They are intended to qualify as tier 2 capital for regulatory capital purposes for the company.
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, pursuant to which the company has agreed to take certain actions to provide for the exchange of the notes for subordinated notes that are registered under the Securities Act of 1933.
Keefe, Bruyette & Woods, a Stifel company, served as the lead placement agent and 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. intends to use the net proceeds from the private placement for general corporate purposes and to support regulatory capital ratios for growth initiatives.
It's important to note that this press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy, any security.
Northrim Bancorp, Inc. is the holding company of Northrim Bank, an Alaska-based community bank with 20 branches throughout the state of Alaska. The bank differentiates itself with its detailed knowledge of Alaska’s economy and its "customer first service" philosophy.
As of the most recent period, Northrim Bancorp, Inc. reported total assets of $2.33 billion, compared to $2.26 billion in the previous period, reflecting an increase of $70 million. Additionally, the company reported a net income of $7.5 million in the most recent period, compared to $6.8 million in the previous period, marking an increase of $700,000. These figures signal notable growth and financial strength for Northrim Bancorp, Inc.
This announcement comes as Northrim Bancorp, Inc. continues to demonstrate its commitment to enhancing its capital structure and supporting its growth initiatives. Today the company's shares have moved -1.96% to a price of $24.56. For the full picture, make sure to review NORTHRIM BANCORP INC's 8-K report.
