Victor, MT – Farmers State Financial Corp., the holding company for Farmers State Bank, completed a 3.75%, $15.0 million private placement of subordinated notes to qualified institutional investors. Due to strong investor demand, the offering was upsized from $10.0 million. The proceeds from this transaction will be used to support future growth, repay extant debt and general corporate purposes. 

The notes will initially bear an interest rate of 3.75% per annum from June 30, 2021 through July 1, 2026, with interest payable semi-annually in arrears. Thereafter, interest will accrue at a floating rate per annum equal to a benchmark rate, which is expected to be the three-month term secured overnight financing rate, plus a spread of 280 basis points, payable quarterly in arrears.

Brean Capital, LLC served as the Company’s exclusive Advisor and Sole Placement Agent in connection with this transaction.  Gerrish Smith Tuck, PC, Memphis, Tennessee served as exclusive Legal Counsel in connection with this transaction.

“We could not be more pleased with the success of our subordinated note offering” stated Kay Clevidence, President of Farmers State Bank. “This capital is fundamental in executing our growth objectives while continuing to support our customers throughout Western Montana.”

Farmers State Financial Corp. is the holding company for Farmers State Bank. Founded in 1907, the Bank is in its fourth generation of ownership. As of December 31, 2020, Farmers State Bank had total assets of $560 million across its nine full-service branch locations in Western Montana. Additional information can be found at:

Brean Capital’s Investment Banking Group is dedicated to helping its clients achieve their strategic and financial goals. For more than 40 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:

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