STURGIS, MI — Sturgis Bancorp, Inc. (“STBI” or the “Company”) (OTCQX: STBI), the holding company of Sturgis Bank & Trust Company (the “Bank”), today announced the completion of an offering (the “Offering”) of $25.5 million aggregate principal amount of its 7.0% fixed-to-floating rate subordinated notes due September 15, 2036 (the “Notes”). The Company intends to use the net proceeds from the Offering for general corporate purposes, including repayment of approximately $17.9 million of existing indebtedness of the Company and a downstream of capital to the Bank.
The Notes are intended to qualify as Tier 2 capital for regulatory purposes and will bear interest at a fixed rate equal to 7.0% per annum for the first five years, payable semiannually, converting to a variable rate of interest equal to the then 3-month SOFR plus 286 basis points per annum, payable quarterly. The Notes will be callable on any interest payment date occurring on or after September 15, 2031.
Brean Capital, LLC served as Sole Placement Agent for the offering.
Sturgis Bancorp, Inc. is the holding company for the Bank, and the Bank’s subsidiaries: Oakleaf Financial Services, Inc., Ayres-Oak Insurance Services, and Oak Title Services, LLC. The Bank provides a full array of trust, commercial and consumer banking services from banking offices in Sturgis, Bangor, Battle Creek, Bronson, Centreville, Climax, Colon, Marshall, Niles, Portage, South Haven, St. Joseph, Three Rivers and White Pigeon, Michigan. Oakleaf Financial Services offers a complete range of investment and financial-advisory services. Ayres-Oak Insurance Services offers various competitive commercial and consumer insurance products. Oak Title Services offers commercial and consumer title insurance. For more information, please visit: www.sturgis.bank.
Brean Capital’s Investment Banking Group is dedicated to helping its clients achieve their strategic and financial goals. For more than 50 years, the Firm has specialized in providing capital raising, M&A and financial advisory services to middle market businesses. Throughout its history, Brean Capital has established a track record of providing its clients with deep market knowledge, commitment and experience to ensure a successful transaction. For more information, please visit: www.breancapital.com/InvestmentBanking.