SB Financial plans $10 million to $15 million convertible preferreds

By Rebecca Melvin

New York, Sept. 22 – SB Financial Group Inc. plans to sell $10 million to $15 million of noncumulative convertible perpetual preferred shares to existing shareholders and other members of the communities the banking company serves via a syndicated offering managed by Keefe, Bruyette & Woods Inc.

The preferreds have a liquidation preference of $1,000 each and can be converted into common stock after five years.

About $7 million of proceeds will be used to fund the redemption of a portion of the company’s junior subordinated debentures underlying the trust preferred securities issued by the company’s RST I subsidiary.

Remaining proceeds will be used for general corporate purposes, including capital contributions to its bank subsidiary to increase regulatory capital and/or investments at the holding company level.

Defiance, Ohio-based SB Financial is a community banking, mortgage banking, wealth management and item processing services company.

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