York Traditions Bank Announces Completion of $5 Million Subordinated Debt Sale and Repayment of Small Business Lending Fund Preferred Stock
YORK, Pa., April 1, 2015 /PRNewswire/ -- York Traditions Bank (OTC Pink: YRKB) announced the March 27, 2015 completion of a $5 million aggregate principal amount of subordinated notes due March 27, 2025 with a 6.25% interest rate. The notes include a right of prepayment on or after March 27, 2020 and qualify as Tier 2 capital. The interest bearing notes represented a private placement with accredited institutional investors.
The Bank also announced the repayment of $5,115,000 of preferred stock on March 31, 2015 issued in 2011 as part of the United States Treasury's Small Business Lending Fund (SBLF).
"We received approval from the Federal Deposit Insurance Company in December 2014 to repay the SBLF without having to raise additional capital," stated Michael E. Kochenour, Founder, Chairman and Chief Executive Officer. "As part of our annual strategic planning process with our Board of Directors, however, we concluded that it was the right time to raise capital through issuance of subordinated debt. This Tier 2 capital keeps us in a position to continue to grow organically without issuing capital that would dilute our common shareholders."
York Traditions Bank, headquartered at 226 Pauline Drive in York, Pennsylvania, has grown to over $300 million in assets with five branches across York County. The Bank recently announced the promotion of Eugene J. Draganosky to the position of President, effective April 1, 2015 as part of an effective succession plan to ensure leadership continuity for the organization and its stakeholders.
To learn more about York Traditions Bank, visit www.yorktraditionsbank.com
Safe Harbor Statement:
Except for historical information contained herein, the matters discussed in this release are forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Because of these risks and uncertainties, our actual future results may be materially different from the results indicated by these forward looking statements. In addition, our past results of operations do not necessarily indicate our future results. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE York Traditions Bank
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