Company Release – 09/23/2020 13:25
Summit Financial Group Announces Completion of $30.0 Million Issuance of Subordinated Debt
MOOREFIELD, W. Va., Sept. 23, 2020 (GLOBE NEWSWIRE) — Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF) today announced the completion of a private placement of $30 million of its 5.00% Fixed to Floating Rate Subordinated Notes due 2030 (the “Notes”) to certain qualified institutional buyers and accredited investors.
The Notes will initially bear interest at a fixed annual rate of 5.00% for the first five years and will reset quarterly thereafter to the then current three-month SOFR rate plus 487 basis points. Beginning on September 30, 2025 through maturity, the Notes may be redeemed, at the Company’s option, on any scheduled interest payment date. The Notes are intended to qualify as Tier 2 capital for regulatory capital purposes for the Company.