NASHVILLE, Tenn., Oct. 29, 2021 /PRNewswire/ -- InsCorp, Inc. (OTCQX: IBTN) in Nashville, and parent company of INSBANK, has completed a private placement of $10.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2031 to certain qualified institutional buyers and accredited investors.
The notes will initially bear interest at 3.75% per year, payable semi-annually in arrears. Beginning October 30, 2026, through the maturity date or earlier redemption, the interest rate will reset quarterly based on the then current three-month term SOFR plus 287 basis points, payable quarterly in arrears. Also beginning on September 30, 2026, through maturity, the notes may be redeemed in whole or in part, at the company's option. The notes will mature on October 31, 2031.
The notes are structured to qualify as Tier 2 capital instruments for regulatory capital purposes. "With an expectation of continued growth in the near term, proceeds will support further expansion in the community and in our niche business lines." said Jim Rieniets, President and CEO. "The potential of using a portion of proceeds to repurchase common stock would further benefit our shareholders."
Baker, Donelson, Bearman, Caldwell & Berkowitz, PC served as legal counsel to the Company.
Since 2000, INSBANK has offered its clients highly personalized service provided by experienced relationship managers, while positioning itself as an innovator, utilizing technologies to deliver those services efficiently and conveniently. In addition to its commercial focused operation, INSBANK operates three divisions, Medquity, TMA Medical Banking and INSBANK Online. Medquity offers healthcare banking solutions to individuals nationwide, whether they are still in residency, practicing or entering retirement, while TMA Medical Banking provides banking services specifically to members of the Tennessee Medical Association. INSBANK Online offers nationally available virtual private client services for interest bearing deposits. INSBANK is owned by InsCorp, Inc., a Tennessee bank holding company. The bank is headquartered in Nashville at 2106 Crestmoor Road, and has an office in Brentwood at 5614 Franklin Pike Circle. For more information, please visit www.insbank.com