Hyperion Bancshares, Inc. Announces Pricing and Closing of $11,000,000 of Subordinated Notes in a Private Placement
PHILADELPHIA, May 20, 2021 /PRNewswire/ -- Hyperion Bancshares, Inc., the parent company of Hyperion Bank, today announced the pricing and closing of a private placement (the "offering") of $11.0 million aggregate principal amount of fixed-to-floating rate subordinated notes.
The notes will initially bear interest at 5.375% per annum, from and including the original issue date of the subordinated notes to but excluding July 1, 2026, payable semi-annually in arrears. From July 1, 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 472 basis points, payable quarterly in arrears. On or after the fifth 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 May 31, 2031.
"We are excited to announce the successful completion of our subordinated debt offering on attractive terms," says Charlie Crawford, Chairman & CEO of Hyperion Bancshares. "This is an important milestone for Hyperion as we continue to transform the franchise and execute on our strategic goals. The portion of this new capital that we downstream to our Bank is leverageable, Tier 1 capital, which will be vital in supporting the growth that we envision for our future organization and will enable us to remain the heartbeat of the communities we serve in Philadelphia and Atlanta. Through the issuance of these notes, we have cost-effectively increased our capital levels without diluting our current shareholders."
Louis DeCesare, Jr., President & COO of Hyperion Bancshares. further commented, "Since joining the company in 2013, our team has worked tirelessly to create what Hyperion is today, a foundational community banking franchise. We have come a long way. This capital raise is an important vote of confidence for what Hyperion is and plans to be."
Performance Trust Capital Partners served as sole placement agent in the offering. Windels Marx Lane & Mittendorf, LLP served as the Company's legal counsel in the offering and Luse Gorman, PC served as legal counsel to Performance Trust Capital Partners.
Hyperion Bank is a full-service community bank that connects with customers via technology and highly accessible, experienced, enthusiastic bankers who have local decision-making authority. The bank serves the needs of diverse communities in greater Philadelphia and Atlanta. In 2020 Hyperion Bank shareholders approved the formation of a holding company, Hyperion Bancshares, Inc. As a result, Hyperion Bank is now a wholly owned subsidiary of the new holding company. The change ensures the bank is best positioned to leverage future opportunities.
No offer or solicitation: This press release does not constitute an offer to sell, a solicitation of an offer to sell or the solicitation of an offer to buy any securities. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Forward-looking statements: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, predictions, protections, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Forward-looking statements are typically, but not exclusively, identified by the use of forward-looking terminology such as "believes," "expects," "could," "may," "will, "should," "seeks," "likely," "intends" "plans," "pro forma," "projects," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of future events. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market areas; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; our ability to successfully identify and address the risks associated with any possible future acquisitions, including risks related to integration; changes in management personnel; interest rate risk; credit risk associated with our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates and projections; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets or deferred tax assets; our risk management strategies; increased competition in the bank and non-bank financial services industries, nationally, regionally or locally, which may adversely affect pricing and terms; the accuracy of our financial statements and related disclosures; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us or to which we become subject; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities and tax laws and regulations, and their application by our regulators; governmental monetary and fiscal policies; and increases in our capital requirements.
While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.
Media inquiries:
B. Andrew (Drew) Plant
[email protected]
678-637-5532
SOURCE Hyperion Bank/Hyperion Bancshares
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