WALL TOWNSHIP, NJ (February 2, 2021) – MB Bancorp, Inc. (“the “Company”), the holding company for Manasquan Bank (the “Bank”), announced today the completion of a private placement of $30 million aggregate principal amount of 3.50% Fixed-to-Floating Rate Subordinated Notes due 2031 (the “Subordinated Notes”) to certain qualified institutional buyers and accredited investors. The Subordinated Notes bear a fixed interest rate of 3.50% per annum for the first five years and will reset quarterly thereafter to the then current Secured Overnight Financing Rate (SOFR) plus 319.5 basis points.
The Company intends to use the net proceeds from the offering for general corporate purposes.The notes are intended to qualify as Tier 2 capital for the Company for regulatory purposes and the portion that the Company contributes to the Bank will qualify as Tier 1 capital for the Bank. "We are extremely pleased with the success of this transaction. The proceeds will allow us to support the communities we serve through continued organic and strategic growth. Further, thistransaction will provide us with the flexibility to accelerate new strategic initiatives to effectively make certain that we remain a competitive, and digitally progressive institution,” said James S. Vaccaro, Chairman, President and Chief Executive Officer of the Company.
Piper Sandler & Co. served as the sole placement agent for the offering. Jones Walker LLP, Washington, D.C., served as legal counsel to MB Bancorp, Inc. and Luse Gorman PC, Washington, D.C., served as legal counsel to Piper Sandler & Co.
This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy the Subordinated Notes nor shall there be any sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The indebtedness evidenced by the Subordinated Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation or any other government agency or fund.
About Manasquan Bank: Manasquan Bank, a mutual community bank with consolidated assets of $2.2 Billion, is headquartered in Wall Township, NJ. The Bank has been serving New Jersey residents since 1874 and continues to pioneer the future of banking with both traditional and digital solutions. The Bank offers a full line of personal & business services, Manasquan Bank operates fifteen branch locations in Middlesex, Monmouth and Ocean Counties. Manasquan Bank proudly supports community-focused, non-profit initiatives through the Manasquan Bank Charitable Foundation. For more information, visit www.manasquan.bank.