STURGIS, MI / ACCESS Newswire / September 2, 2026 / Sturgis Bancorp, Inc. (OTCQX:STBI) (the "Company"), the holding company of Sturgis Bank & Trust Company (the "Bank"), today announced the completion of an offering (the "Offering") of $25.5 million aggregate principal amount of its 7.0% fixed-to-floating rate subordinated notes due September 15, 2036 (the "Notes") in a private placement to various qualified institutional buyers and accredited investors. The price for the Notes was 100% of the principal amount of the Notes. The Notes are intended to qualify as Tier 2 capital for regulatory purposes. The Company intends to use the net proceeds from the Offering for general corporate purposes, including repayment of approximately $17.9 million of existing indebtedness of the Company and a downstream of capital to the Bank.
Interest on the Notes will accrue at a rate equal to (i) 7.0% per annum from the original issue date to, but excluding, September 15, 2031, payable semi-annually in arrears, and (ii) a floating rate per annum equal to a benchmark rate, which is expected to be the Three-Month Term SOFR (as defined in the Notes), plus a spread of 286 basis points from and including September 15, 2031 until maturity, payable quarterly in arrears. Beginning on September 15, 2031 through maturity, the Notes may be redeemed, at the Company's option, on any scheduled interest payment date. Any redemption will be at a redemption price equal to 100% of the principal amount of Notes being redeemed, plus accrued and unpaid interest.
Brean Capital, LLC served as financial advisor to the Company and acted as the sole placement agent for the Offering, and was represented by Amundsen Davis LLC as legal counsel. Warner Norcross + Judd LLP served as the Company's legal counsel in the Offering.
About Sturgis Bancorp, Inc. and Sturgis Bank & Trust Company
Sturgis Bancorp, Inc. is the holding company for the Bank, and the Bank's subsidiaries: Oakleaf Financial Services, Inc., Ayres-Oak Insurance Services, and Oak Title Services, LLC. The Bank provides a full array of trust, commercial and consumer banking services from banking offices in Sturgis, Bangor, Battle Creek, Bronson, Centreville, Climax, Colon, Marshall, Niles, Portage, South Haven, St. Joseph, Three Rivers and White Pigeon, Michigan. Oakleaf Financial Services offers a complete range of investment and financial-advisory services. Ayres-Oak Insurance Services offers various competitive commercial and consumer insurance products. Oak Title Services offers commercial and consumer title insurance.
The Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be reoffered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy any security, nor shall there be any sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. 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.
Contacts
Jason J. Hyska, Chief Executive Officer
Brian P. Hoggatt, Executive Vice President, Chief Financial Officer
(269) 651-9345
SOURCE: Sturgis Bancorp, Inc.
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/sturgis-bancorp-inc.-announces-completion-of-25.5-million-subordinat-1215180
