By Wendy Van Sickle
Columbus, Ohio, Sept. 23 – Summit Financial Group, Inc. completed a $30 million private placement of 10-year fixed-to-floating rate subordinated notes, according to a press release and an 8-K filing with the Securities and Exchange Commission.
The notes will bear a fixed interest rate of 5% until Sept. 30, 2025, after which they will bear floating interest equal to SOFR plus 487 basis points.
The notes will qualify as tier 2 capital.
Summit may redeem the notes at par on any interest payment date beginning Sept. 30, 2025, according to a press release.
Proceeds will be used for general corporate purposes.
D.A. Davidson & Co. is placement agent.
Based in in Moorefield, W.Va., Summit provides community banking services through its bank subsidiary, Summit Community Bank, Inc.
| Issuer: | Summit Financial Group, Inc.
|
| Issue: | Fixed-to-floating rate subordinated notes
|
| Amount: | $30 million
|
| Maturity: | Sept. 30, 2030
|
| Placement agent: | D.A. Davidson & Co.
|
| Coupon: | Initially 5%, payable semiannually; beginning Sept. 30, 2025, SOFR plus 487 bps
|
| Price: | Par
|
| Call option: | At par on any interest payment date beginning Sept. 30, 2025
|
| Pricing date: | Sept. 18
|
| Distribution: | Private placement and to QIB based on Rule 144A
|
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