Investment Banking - Sturgis Bancorp, Inc.

Transactions | Banking

Client: Sturgis Bancorp, Inc.
Industry: Banking
Transaction Type: Subordinated Notes
Role: Sole Placement Agent

Sturgis Bancorp, Inc. Announces Completion of
Subordinated Notes Offering

  • Sturgis Bancorp, Inc. (OTCQX: STBI or the “Company”), is the parent holding company of Sturgis Bank & Trust Company (the “Bank”), and the Bank’s subsidiaries: Oakleaf Financial Services, Inc., Oak Mortgage, LLC, Oak Insurance Services, LLC, and Oak Title Services, LLC. The Bank provides a full array of trust, commercial, and consumer banking services from banking centers in Sturgis, Bangor, Bronson, Centreville, Climax, Colon, Portage, South Haven, St. Joseph, Three Rivers, and White Pigeon, Michigan. As of September 30, 2020, the Company had $604.8 million in total assets, $456.5 million in gross loans, and $486.4 million in deposits on its balance sheet.
  • On December 30, 2020, the Company announced the completion of a private placement of $15 million aggregate principal amount of its 5.00% fixed-to-floating rate subordinated notes due December 30, 2030 (the “Notes”) to various accredited investors (the “Offering”).
  • The Notes will bear an interest rate of 5.00% per year for the first five years and then will float at a rate of 473 basis points above the Three-Month Term SOFR. The Notes are callable without penalty after five years.
  • The Company intends to use the net proceeds from the Offering for general corporate purposes, including without limitation financing organic growth and investments in the Bank and its other subsidiaries for regulatory capital purposes.
  • Boenning & Scattergood served as financial advisor to the Company and acted as the sole placement agent for the Offering.

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