Loan & DebtAug 7, 2026, 04:08 PM
LCNB Corp. Issues $25M Subordinated Notes at 6.50% Fixed-to-Floating Rate
AI Summary
LCNB Corp. announced the closing of a private placement of $25.0 million in 6.50% Fixed-to-Floating Rate Subordinated Notes due 2036. The notes will initially bear a fixed interest rate of 6.50% for five years, then convert to a variable rate based on the 3-month SOFR plus 234 basis points. The company plans to use the net proceeds to repay approximately $8.8 million of existing long-term debt and for general corporate purposes, including supporting future growth at LCNB National Bank. These notes are structured to qualify as Tier 2 capital for regulatory purposes.
Key Highlights
- LCNB Corp. issued $25,000,000 in aggregate principal amount of Subordinated Notes.
- The notes are 6.50% Fixed-to-Floating Rate Subordinated Notes due 2036.
- Initial interest rate is 6.50% annually, payable semi-annually until August 15, 2031.
- After August 15, 2031, the rate will reset quarterly to 3-month SOFR plus 234 basis points.
- The notes mature on August 15, 2036, and are callable by the company after August 15, 2031.
- Proceeds will be used for general corporate purposes, including refinancing $8.8 million of existing debt.
- The Subordinated Notes are intended to qualify as Tier 2 capital for regulatory purposes.
Price Impact
More from LCNB