NASHVILLE, Tennessee., October 29, 2021 / PRNewswire / – InsCorp, Inc. (OTCQX: IBTN) in Nashville, and parent company of INSBANK, carried out a private placement of $ 10.0 million in total capital of subordinated variable rate fixed-rate bonds maturing in 2031 to certain qualified institutional buyers and qualified investors.
The Notes will initially bear interest at a rate of 3.75% per annum, payable semi-annually in arrears. Start October 30, 2026, until the maturity date or the early repayment, the interest rate will be reset quarterly on the basis of the three-month SOFR then in force increased by 287 basis points, payable quarterly in arrears. Also starting on September 30, 2026, until maturity, the Notes may be redeemed in whole or in part, at the option of the Company. Notes will mature on October 31, 2031.
The Notes are structured to qualify as Tier 2 capital instruments for regulatory capital purposes. “With an expectation of continued short-term growth, the product will support further expansion into the community and into our niche business lines.” noted Jim Rieniets, President and CEO. “The ability to use a portion of the proceeds to repurchase common stock would further benefit our shareholders.”
Baker, Donelson, Bearman, Caldwell & Berkowitz, PC acted as legal counsel to the Company.
Since 2000, INSBANK has been offering its clients a highly personalized service provided by experienced relationship managers, while positioning itself as an innovator, using technologies to provide these services in an efficient and practical manner. In addition to its business activities, INSBANK operates three divisions, Medquity, TMA Medical Banking and INSBANK Online. Medquity offers healthcare banking solutions to individuals nationwide, whether they are still in residence, practicing, or retiring, while TMA Medical Banking provides banking services specifically to members of Tennessee Medical. Association. INSBANK Online offers virtual private client services available nationwide for interest bearing deposits. INSBANK is owned by InsCorp, Inc., a Tennessee bank holding company. The bank is headquartered at Nashville at 2106 Crestmoor Road, and has an office at Brentwood at 5614 Franklin Pike Circle. For more information, please visit www.insbank.com