LIMERICK, Pa., Dec. 06, 2024 (GLOBE NEWSWIRE) — The Victory Bancorp, Inc. (OTCQX: VTYB), the holding company for The Victory Bank, today announced the pricing and closing of a private placement of $4.65 million aggregate principal amount of fixed-to-floating rate subordinated notes. Proceeds from the sale of the Notes will be utilized for general corporate purposes, including, but not limited to, funding organic and future strategic growth initiatives, broadening balance sheet flexibility and supporting bank regulatory capital ratios.
The Notes will initially bear interest at 8.50% per annum, from and including the original issue date of the subordinated notes to but excluding December 31, 2026, payable semi-annually in arrears. From December 31, 2026 through maturity, or up to an early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus a spread, payable quarterly in arrears. On or after the second anniversary of the original issue date through maturity, the Notes may be redeemed, at the Company’s option, on any scheduled interest payment date. The Notes will mature on December 31, 2029.
Joseph W. Major, Bank Leader and Chief Executive Officer of the Company stated, “We are excited to announce the successful completion of our capital offering with attractive terms. This offering is a cost-effective, leverageable Tier 1 bank equity capital instrument that does not dilute the current shareholders.” Major further stated, “This capital is an important milestone so that Victory can continue to support the growth of our organization and strengthen our commitment to serving our local communities.”
Performance Trust Capital Partners served as placement agent in the Offering. Kilpatrick Townsend & Stockton LLP served as legal counsel to the Company. Pillar+Aught served as legal counsel to Performance Trust Capital Partners in the Offering.
About the Company
Victory Bancorp, Inc. is traded on the OTCQX market under the symbol VTYB (https://www.otcmarkets.com/) and is the parent company of The Victory Bank, a Pennsylvania state-chartered commercial bank headquartered in Limerick, Pennsylvania, which is located just outside the Philadelphia market in Montgomery County. The Victory Bank was established in 2008 as a specialized business lender that provides high-quality banking services to small and mid-sized businesses and professionals through its three offices located in Montgomery and Berks Counties, Pennsylvania. Additional information about Victory Bancorp is available on its website, VictoryBank.com.
