Birmingham, AL, Oct 04, 2021 (GLOBE NEWSWIRE) – – First US Bancshares, Inc. (Nasdaq: FUSB) (the “Company”), the parent company of First US Bank, today announced the completion of a private placement of $ 11.0 million in aggregate principal amount of fixed-floating rate subordinated notes due October 1, 2031 (the “Notes”). The Notes were sold to certain accredited institutional investors and qualified institutional buyers on October 1, 2021. The Notes are intended to qualify as Tier 2 capital of the Company for regulatory capital purposes.
FUSB plans to use the net proceeds for general corporate purposes, which may include repurchasing the Company’s common stock, and to support organic growth plans, including maintaining capital ratios.
The Notes will mature on October 1, 2031. The Notes will initially bear interest at a rate of 3.50% per annum, payable semi-annually in arrears, until October 1, 2026 (or an earlier redemption date) only. From October 1, 2026 until the expiry date (or an earlier redemption date) excluded, the interest rate will be reset quarterly to a benchmark interest rate per year which, under certain conditions provided for in the Notes, will then equal then the current three-month guaranteed overnight (“SOFR”) funding rate increased by 275 basis points, with interest during this period payable quarterly in arrears. The Notes are redeemable by the Company, in whole or in part, at the Company’s discretion, effective October 1, 2026 on any interest payment date. Prior to October 1, 2026, tickets are only refundable by the Company upon the occurrence of certain events. Any reimbursement of the Tickets is subject to certain conditions.
Piper Sandler & Co. acted as the placement agent for the offering of the Notes. Maynard, Cooper & Gale, PC acted as legal counsel to the Company and Troutman Pepper Hamilton Sanders LLP acted as legal counsel to the Placement Agent.
The offering and sale of the Securities by the Company has not been registered under the Securities Act of 1933, as amended, or any state securities law, subject to certain exemptions from these requirements. recording. The Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy the Tickets, and there will be no sale of the Tickets in any state or jurisdiction. in which any such offer, solicitation or sale would be unlawful prior to their registration or qualification under the securities laws of any such state or jurisdiction.
The Notes are unsecured subordinated obligations of the Company, are not obligations of and are not guaranteed by a subsidiary of the Company, and rank inferior in the right to payment of the indebtedness. current and future leading position of the Company. 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 First US Bancshares, Inc.
First US Bancshares, Inc. is a banking holding company which operates banking offices in Alabama, Tennessee and Virginia through First US Bank (the “Bank”). In addition, the activities of the Company include Acceptance Loan Company, Inc., a consumer loan company (“ALC”), and FUSB Reinsurance, Inc., an underwriter of credit life insurance and credit life insurance policies. credit and health accident insurance sold to consumers by the Bank and ALC. loan customers. The Company files periodic reports with the United States Securities and Exchange Commission (the “SEC”). Copies of its documents can be obtained from the SEC’s website at www.sec.gov or at www.firstusbank.com. Further information on the Company and the Bank can be obtained at www.firstusbank.com. The Company’s shares are traded on the Nasdaq Capital Market under the symbol “FUSB”.
This press release contains forward-looking statements, as defined by federal securities laws. Statements in this press release that are not historical facts are forward-looking statements. These statements may deal with matters that involve significant risks, uncertainties, estimates and assumptions made by management. These forward-looking statements include, without limitation, statements regarding the future plans, results, strategies and expectations of the Company and certain matters relating to the issuance of the Notes, including the use of the proceeds thereof. this. The Company does not undertake to update these statements after the date of this press release, except as required by law. In addition, the Company, through its senior management, may make from sometimes forward-looking public statements regarding the matters described in this document. These forward-looking statements are necessarily estimates reflecting the best judgment of the Company’s senior management based on current information and involve a number of risks and uncertainties.
Certain factors that could affect the accuracy of these forward-looking statements are identified in public documents filed by the Company with the SEC, and forward-looking statements contained in this press release or in other public statements of the Company or its senior management should be viewed in light of these factors. Specifically, these factors include, but are not limited to, changes in general market, economic, fiscal, regulatory or industry conditions that may affect the decision making on the use of proceeds from ticket sales. including whether, when and what amount of common shares, if any, may be redeemed using such proceeds; the rate of growth (or lack thereof) of the economy in general and in the area of the Bank’s service; market conditions and returns on investment; changes in interest rates; the impact of the current COVID-19 pandemic on the Company’s operations, the Company’s customers, the communities served by the Company and the United States economy, including the impact of actions taken by authorities governments in an attempt to contain and protect themselves from the virus, through vaccinations and the like, or to combat the impact of the virus on the economy of the United States (including, without limitation, the CARES Act (Coronavirus Aid, Relief and Economic Security) and subsequent federal legislation) and the resulting effect on the Company’s operations, liquidity and capital position and on the financial position of borrowers and other clients of the society ; the imminent end of LIBOR as a benchmark interest rate; the availability of quality loans in the Bank’s service area; the relative strength and weakness of the consumer and commercial credit sectors and real estate markets; guarantee values; cybersecurity threats; and the risks associated with the paycheck protection program. There can be no assurance that these or other factors will not affect the accuracy of these forward-looking statements.
CONTACT: Contact: Thomas S. Elley (205) 582-1200