Touchstone Bankshares Announces Completion of Subordinated Debt Private Placement

PRINCE GEORGE, Va., Aug. 12, 2020 /PRNewswire/ -- Touchstone Bankshares, Inc. (the "Company") TSBA, the holding company for Touchstone Bank, announced today the closing of its private placement of $8.0 million of subordinated notes due 2030 (the "Notes"). 

"We are proud to announce the successful completion of our subordinated debt offering," said James Black, President and CEO. "This offering was oversubscribed, and we are very pleased with the group of investors who participated. We believe the quality of this offering's investor base speaks highly of our Company's performance and commitment to credit quality." 

About the Notes

The Notes have a maturity date of August 15, 2030 and carry a coupon of 6.00% for the first five years. Thereafter, the Notes will pay interest at 3-month SOFR plus 596 basis points, resetting quarterly. The Company is entitled to redeem the Notes without penalty, in whole or in part, on any interest payment date on or after August 15, 2025, or at any time, in whole but not in part, upon certain other specified events. The Notes have been structured to qualify as Tier 2 capital for regulatory purposes at the holding company.

Mr. Black further commented, "The subordinated debt will allow us to support our strategic growth plans, potentially repay our existing $3.5 million of subordinated debt held at Touchstone Bank that carries a higher coupon, and to fuel our commitment to our friends and neighbors in our communities. We were very pleased with the positive response from the investment community."

The Company plans to use the proceeds from the placement of the Notes for general corporate purposes, including the potential repayment of the existing $3.5 million of subordinated debt and to support capital levels at Touchstone Bank.

Piper Sandler & Co. served as the sole placement agent for the offering.  Williams Mullen served as legal counsel to the Company and Troutman Pepper Hamilton Sanders LLP served as legal counsel to the placement agent.

About Touchstone Bankshares, Inc.

Touchstone Bankshares, Inc. is the bank holding company for Touchstone Bank. The formation of Touchstone Bankshares, Inc. was finalized on July 1, 2020 with a one-for-one share exchange of Touchstone Bank preferred and common shares with Touchstone Bankshares, Inc. preferred and common shares, respectively.   Touchstone Bank is a full-service community bank headquartered in Prince George, Virginia.  The Bank has eleven branches serving Southern and Central Virginia and two branches and a loan center serving Northern North Carolina. Visit www.touchstone.bank for more information.

Forward-Looking Statements

In addition to historical information, this press release may contain certain forward-looking statements. For this purpose, any statement that is not a statement of historical fact may be deemed to be a forward-looking statement. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, and actual results could differ materially from historical results or those anticipated by such statements.  Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to, the impacts of the ongoing COVID-19 pandemic; changes in interest rates and general economic conditions; the legislative/regulatory climate; monetary and fiscal policies of the U.S. Government; the quality or composition of the loan or investment portfolios; demand for loan products; deposit flows; competition; demand for financial services in the Company's market area; mergers, acquisitions and dispositions; implementation of new technologies and the ability to develop and maintain secure and reliable electronic systems; and tax and accounting rules, principles, policies and guidelines.

SOURCE Touchstone Bankshares, Inc.