ServBanc Holdco, Inc. Raises $90 Million in Growth Capital via Oversubscribed, Upsized Offering

• Growth-oriented, offensive capital issuance
• Prepares ServBanc to be well-positioned to execute on future M&A and organic growth
• Oversubscribed, upsized offering resulted in more than 45 unique investors, including banks, insurance companies, and other institutional investors
• ServBanc received an investment grade rating designation from Morningstar DBRS

PHOENIX, Aug. 14, 2026 /PRNewswire/ -- ServBanc Holdco, Inc. ("ServBanc"), the bank holding company of Servbank, National Association ("Servbank"), announced today that it completed a private placement on August 13, 2026, of $90.0 million in aggregate principal amount of 7.00% Fixed-to-Floating Rate Subordinated Notes due 2036 (the "Notes").

"Closing this $90 million offering is a strategic win for ServBanc. It accomplishes several key goals: it bolsters our capital base, enhances our balance sheet flexibility, and takes advantage of attractive, tax-deductible cost-of-capital financing options," said Stavros Papastavrou, Chairman of ServBanc. "We believe this capital further enables us to deliver a first-class experience for our customers while positioning us to seek additional acquisition opportunities," Mr. Papastavrou added. "Not only are we humbled by the scale of investor participation in this offering, but also to have received an investment grade rating designation from Morningstar DBRS. We feel this designation represents a considerable milestone for our franchise as we continue to elevate the ServBanc brand across the country. The future is bright for ServBanc," said Mr. Papastavrou.

The Notes are intended to qualify as Tier 2 capital for ServBanc for regulatory capital purposes. The Notes will initially bear interest at a fixed interest rate of 7.00% per annum until August 15, 2031. Thereafter, the interest rate will reset quarterly to a floating rate equal to a benchmark rate, which is expected to be the then-current Three-Month Term Secured Overnight Financing Rate ("SOFR"), plus 295 basis points, until the Notes mature on August 13, 2036. The Notes may be redeemed by ServBanc, at its option, in whole or in part, on any interest payment date on or after August 13, 2031, and in whole, but not in part, at any time upon the occurrence of certain events. Any redemption will be at a redemption price equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest.

ServBanc intends to use the net proceeds from the private placement for general corporate purposes, including potential future acquisitions.

Performance Trust Capital Partners, LLC acted as sole placement agent for the transaction and was represented by Luse Gorman, PC. Hunton Andrews Kurth LLP served as legal counsel to ServBanc.

The Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy any security, nor shall there be any sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The indebtedness evidenced by the Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation or any other government agency or fund.

About ServBanc Holdco, Inc.

ServBanc Holdco, Inc. is the $1.7 billion-asset (as of June 30, 2026) bank holding company of Servbank, National Association. Servbank serves customers across diverse and economically attractive markets throughout the U.S. through a large-scale mortgage subservicing business, a traditional community banking franchise and a specialty banking division. Servbank's mortgage subservicing platform processes payments and manages borrower needs on behalf of lenders that originate and retain mortgage servicing rights while outsourcing day-to-day servicing operations. As of March 31, 2026, the subservicing platform serviced approximately $55.6 billion in unpaid principal balances across approximately 200,000 customers in all 50 states, Puerto Rico, and the District of Columbia, and served approximately 80 clients. Servbank also operates a traditional community banking franchise across five Illinois counties, offering residential, consumer and business banking products paired with low-cost core deposit funding. Through its specialty banking division, Servbank provides national-scope financial services, including commercial real estate lending, private equity finance, HOA banking and SBA lending, led by experienced specialty bankers. Supporting these business lines is Servbank's proprietary technology platform, SIME (Servicing Intelligence Made Easy), which provides clients with real-time access to loan information and supports payment processing, ACH remittances and custodial deposit services. For additional information on Servbank's offerings, please refer to Servbank's website: http://servbank.com/.

Forward-Looking Statements

This press release contains, and future oral and written statements of ServBanc and Servbank may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect ServBanc's current views with respect to future events, including the anticipated use of proceeds from the offering of the Notes and related matters. Any statements about ServBanc's expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "can," "could," "may," "predicts," "should," "will," "estimate," "plans," "expects," "intends" and similar words or phrases. Forward-looking statements should not be relied on because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of ServBanc and Servbank. These risks, uncertainties and other factors may cause the actual results, performance and achievements of ServBanc and Servbank to be materially different from the anticipated future results, performance or achievements expressed in, or implied by, the forward-looking statements. Due to these and other possible uncertainties and risks, ServBanc can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Further, any forward-looking statement speaks only as of the date on which it is made and ServBanc undertakes no obligation to update or revise 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, except as required by applicable law. All forward-looking statements, express or implied, herein are qualified in their entirety by this cautionary statement.

Note Regarding Credit Rating

A rating is not a recommendation to buy, sell or hold securities. Ratings may be subject to revision or withdrawal at any time by the assigning rating organization. Each rating agency has its own methodology for assigning ratings and, accordingly, each rating should be evaluated independently of any other rating.

SOURCE Servbank