WRIV - White River Bancshares Company Completes Private Placement of $11 Million of Subordinated Debt

FAYETTEVILLE, Ark., Dec. 11, 2019 (GLOBE NEWSWIRE) -- White River Bancshares Company (OTCQX: WRIV), (the “Company”) the holding company for Signature Bank of Arkansas (the “Bank”), today announced  that it has completed the private placement of $11 million in fixed-to-floating rate subordinated notes due December 31, 2029 (the “Notes”) to institutional accredited investors. White River intends to use the net proceeds from this placement to replace existing debt, support organic growth and for general corporate purposes.

The Notes have been structured to qualify as Tier 2 capital for the Company for regulatory purposes and will bear interest at a fixed rate of 5.875% per annum until December 31, 2024. For the remainder of the term, the subordinated notes, which mature on December 31, 2029, will bear interest at a rate equal to 3-month Secured Overnight Financing Rate (“SOFR”) plus 442 basis points. The subordinated notes are redeemable by the Company at its option, in whole or in part, on or after December 31, 2024, or in whole but not in part under certain other circumstances.

Raymond James & Associates, Inc. served as the sole placement agent for the offering. Kutak Rock LLP served as legal counsel to the Company and Holland & Knight LLP served as legal counsel to the placement agent.

About White River Bancshares Company

White River Bancshares Company is the single bank holding company for Signature Bank of Arkansas.  Both are headquartered in Fayetteville, Arkansas.  The Bank has locations in Fayetteville, Springdale, Bentonville, Rogers and Brinkley, Arkansas.  Founded in 2005, Signature Bank of Arkansas provides a full line of financial services to small businesses, families and farms.  White River Bancshares Company (OTCQX: WRIV), qualified to trade on the OTCQX® Best Market in December 2018.  Further information about the Company and the Bank can be found at www.sbofa.com.

Forward Looking Statements

Except for historical information contained herein, the statements contained in this news release, are forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which the Bank will be conducting its operations, including the real estate market in California and other factors beyond the Bank’s control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. You should not place undue reliance on the forward-looking statements, which reflect management’s view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.