Union Financial Corporation Announces Completion of $6 Million Subordinated Notes Offering
Lake Odessa, Michigan – December 17, 2021 – Cortney Collison, Union Bank President and Chief Executive Officer, announced today that Union Financial Corporation (the “Company”), the parent company of Union Bank (the “Bank”), has closed a private placement of $6.0 million in aggregate principal amount of its 3.50% fixed-to-floating rate subordinated notes due 2031 (the “Notes”). The Company intends to use the net proceeds from the Notes for general corporate purposes.
The Notes will initially bear interest at a fixed interest rate of 3.50% per annum until December 15, 2026, after which time the interest rate will reset quarterly to an interest rate per annum equal to Three-Month Term SOFR plus 243 basis points. The Notes will mature on December 15, 2031.
Donnelly Penman & Partners, Inc. acted as the sole placement agent and was represented by Warner Norcross + Judd LLP in the offering. Varnum LLP served as legal counsel for the Company.
The Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be reoffered or sold absent registration or an applicable exemption from registration requirements. This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy any security. The indebtedness evidenced by the Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation (FDIC) or any other government agency or fund.
Union Bank is a wholly owned subsidiary of Union Financial Corporation and operates full-service banking offices in Ada, Lake Odessa, Dimondale, Hastings, Mulliken, and Westphalia. Member FDIC and Equal Housing Lender. (NMLS# 488568) ubmich.com