HAMILTON, NJ --(Marketwired - April 30, 2015) - First Bank (
The notes have a maturity date of May 1, 2025 and carry a fixed rate of interest of 6.75% for the first five years. Thereafter, the notes will pay interest at LIBOR plus 530 basis points. The notes include a right of prepayment, without penalty, on or after May 1, 2020. The subordinated notes have been structured to qualify as Tier 2 capital for regulatory purposes.
President and Chief Executive Officer Patrick L. Ryan discussed the offering: "We are pleased to announce the successful completion of our subordinated debt offering. This new capital will provide a strong base for continued growth without the dilutive impact of issuing new shares of stock. Furthermore, the tax-deductible nature of the instrument, combined with historic low interest rates, makes the overall cost of capital quite attractive."
Sandler O'Neill + Partners, L.P. served as the sole placement agent for the private offering. First Bank was advised by Windels Marx Lane and Mittendorf, LLP.
About First Bank First Bank ( www.firstbanknj.com ) is a New Jersey state-chartered bank with nine full-service branches in Cranbury, Denville, Ewing, Hamilton, Lawrence, Randolph (2), Somerset and Williamstown, New Jersey. With $731 million in assets as of March 31, 2015, First Bank offers a traditional range of deposit and loan products to individuals and businesses throughout the New York City to Philadelphia, PA corridor. First Bank's common stock is listed on the Nasdaq Global Market under the symbol "FRBA".
This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond First Bank's control and could impede its ability to achieve these goals. These factors include those listed in our Annual Report on Form 10K under the caption "Item 1A-Risk Factors", and general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, and results of regulatory exams, among other factors.
Patrick L. Ryan President and CEO (609) 643-0168 patrick.ryan@firstbanknj.com
