First Bank Announces Completion of $ 30 Million Subordinates


HAMILTON, NJ, May 29, 2020 (GLOBE NEWSWIRE) – First Bank (NASDAQ: FRBA) today announced the closing of a private placement of $ 30.0 million of fixed-rate subordinated notes. The Bank expects to use the proceeds to repurchase $ 22.0 million of outstanding subordinated notes and for general corporate purposes.

The notes have a maturity date of June 1, 2030 and bear a fixed interest rate of 5.50% for the first five years. Thereafter, the Notes will bear interest at a variable rate, readjusted quarterly, equal to the three-month SOFR then in effect plus 538 basis points. The Notes may be redeemed at the option of the Bank, without penalty, effective June 1, 2025. The Subordinated Notes have been structured to qualify as Tier 2 capital for regulatory purposes.

President and CEO Patrick L. Ryan discussed the offer: “We are pleased to announce the success of our subordinated debt offer. This new capital will allow us to withdraw our existing subordinated notes at a lower interest rate and provide a solid foundation for continued growth without the dilutive impact of issuing new shares. In addition, the tax-deductible nature of the instrument, combined with a low interest rate, makes the overall cost of capital very attractive.

Piper Sandler & Co. was the lead placement agent for the private offering with the co-managers of Hovde Group, LLC, Boenning & Scattergood and DA Davidson & Co. First Bank was advised by Pepper Hamilton LLP and Piper Sandler & Co. was advised by Goodwin Procter LLP.

About First Bank
First Bank is a New Jersey State chartered bank with 18 full-service branches in Cinnaminson, Cranbury, Delanco, Denville, Ewing, Flemington, Hamilton, Hamilton Square, Lawrence, Mercerville, Pennington, Randolph, Somerset and Williamstown, New Jersey; and Doylestown, Trevose, Warminster and West Chester, Pennsylvania. With $ 2.1 billion in assets as of March 31, 2020, First Bank offers a full line of personal and business deposit and lending products throughout the New York to Philadelphia corridor. The common shares of First Bank are listed on the Nasdaq Global Market under the symbol “FRBA”.

This press release contains certain forward-looking statements, express or implied, which are provided to help the reader understand anticipated future financial performance. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the control of First Bank and could impair its ability to achieve these objectives. These factors include those listed in Item 1A-Risk Factors of our Annual Report on Form 10 K for the period ended December 31, 2019 and our Quarterly Report on Form 10 Q for the period ended March 31, 2020, the impacts of COVID 19 pandemic on the Banking and economy, the general state of the economy, the direction and timing of interest rate changes, changes in laws or regulatory policies, our ability to attract and building customer loyalty in a new market, our ability to integrate new technologies into operations, and many other factors, many of which are completely beyond our control. If one or more events relating to these or other risks or uncertainties materialize, or if First Bank’s underlying assumptions prove to be incorrect, actual results may differ materially from what First Bank anticipates. Therefore, you should not place undue reliance on these forward-looking statements.

Patrick L. Ryan, President and Chief Executive Officer
(609) 643-0168, [email protected]


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