Investment Banking - First Bank

Transactions | Banking

Client: First Bank
Industry: Banking
Transaction Type: Subordinated Notes Offering
Role: Co-Placement Agent


  • First Bank (Nasdaq: FRBA), or the “Company,” is a New Jersey state-chartered bank with $2.1 billion in total assets and 18 full-service branches. The Company targets business from individuals, businesses, and government entities located in the corridor between New York City and Philadelphia. First Bank focuses on traditional deposit and loan products with an emphasis on customer service.
  • On May 29, 2020, the Company announced the completion of a private placement of $30 million aggregate principal amount of 5.50% fixed-to-floating rate subordinated notes due 2030 (the “Notes”).
  • The Notes bear a fixed-to-floating interest rate of 5.50% per annum for an initial five years and then will reset quarterly at a rate equal to zero or the three-month SOFR plus 538 bps.
  • The Notes will be redeemable on June 1, 2025 and have a BBB rating from Kroll. First Bank intends to use the proceeds to redeem $22 million of its current subordinated notes and use the balance as additional capital.
  • Currently, there is no public market for the Subordinated Notes and none is expected to develop in the future.
  • Boenning & Scattergood, Inc. served as a co-placement agent in the transaction.