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Dec 2020
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December 30, 2020

Warner Represents Sturgis Bancorp, Inc. in Subordinated Notes Offering

Sturgis Bancorp, Inc. (OTCQX; STBI), the parent holding company of Sturgis Bank & Trust Company, today announced the completion of a private placement of $15 million aggregate principal amount of its 5.0% fixed-to-floating rate subordinated notes due December 30, 2030, to various accredited investors. The price for the subordinated notes was 100% of the principal amount of the notes, and the notes are intended to qualify as Tier 2 capital for regulatory purposes.

 
Sturgis Bancorp, Inc. intends to use the net proceeds from the Offering for general corporate purposes, to finance organic growth and investments in the bank and its other subsidiaries for regulatory capital purposes.
 
Interest on the notes will accrue at a rate equal to (i) 5.0% per annum from the original issue date to, but excluding, December 30, 2025, payable semi-annually in arrears, and (ii) a floating rate per annum equal to a benchmark rate, which is expected to be the Three-Month Term SOFR, plus a spread of 473 basis points from and including December 30, 2025 until maturity, payable quarterly in arrears.
 
Sturgis Bancorp, Inc. is the holding company of Sturgis Bank & Trust Company, and its subsidiaries: Oakleaf Financial Services, Inc., Oak Mortgage, LLC, Oak Insurance Services, LLC, and Oak Title Services, LLC. Sturgis Bancorp, Inc. provides a full array of trust, commercial and consumer banking services from banking centers in Sturgis, Bangor, Bronson, Centreville, Climax, Colon, Portage, South Haven, St. Joseph, Three Rivers and White Pigeon, Michigan.
 
The Warner transaction team was led by Jeffrey Ott and Charlie Goode and included Sarah Harper and Malaina Weldy.
 
Warner’s Banking Law Practice Group
 
As part of one of the largest and most successful law firms in Michigan, the attorneys in Warner’s Banking Law Practice Group counsel banks and bank holding companies to develop capital raising strategies and to execute public offerings and private placements of securities. Our attorneys practice all aspects of banking law, including bank formations, mergers and acquisitions, strategic transactions, commercial lending, consumer credit, negotiable instruments, bank litigation, workouts and bankruptcy, leveraged leasing, antitrust and regulatory compliance. 

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