MOUNT VERNON, Wash., March 07, 2022 (GLOBE NEWSWIRE) — Savi Financial Corporation, Inc. (OTC Pink: SVVB), SaviBank’s bank holding company, completed the issuance of $17 million of 10-year fixed-floating rate subordinated notes. Subordinated debt is structured to qualify as Tier 2 capital within the holding company. The 10-year bonds will initially bear interest at 4.25% per annum until March 31, 2027, then pay a quarterly floating rate equal to the three-month average SOFR plus 250 basis points. The Company intends to use the net proceeds for possible future strategic opportunities and for general corporate purposes, including investments in its wholly owned subsidiary, SaviBank, as regulatory capital.
“This successful fundraising gives us the opportunity to develop our business plan and is an affirmation of the tremendous opportunities in our market,” said Michal D. Cann, president and president of Savi Financial Corporation. “Subordinated bonds are a very cost effective way to increase regulatory capital.”
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities and does not constitute an offer, solicitation or sale in any jurisdiction in which such an offer would be unlawful. The securities referenced above offered and sold by the Company have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold absent registration or an exemption from registration.
Performance Trust Capital Partners, LLC served as placement agent for this offering. Keller Rohrback acted as legal counsel to the Company in connection with this offer.
About Savi Financial Corporation Inc. and SaviBank –
Savi Financial Corporation is the bank holding company that owns SaviBank. The Bank began operations on April 11, 2005 and has 9 branches in Anacortes, Burlington, Bellingham, Concrete, Mount Vernon (2), Oak Harbor, Freeland and Sedro-Woolley, Washington. The Bank provides loan and deposit services to customers who are primarily small to medium sized businesses and individuals in and around Skagit, Island and Whatcom counties. As a locally owned community bank, we believe that when everyone becomes savvy about their finances, our whole community benefits. Give us a call or stop by one of our locations and we’ll show you how to use Savi. For more information on SaviBank, visit; www.SaviBank.com.
This release may contain “forward-looking statements” that are subject to risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect the opinions of management only as of the date hereof. All statements, other than statements of historical facts, regarding our financial condition, business strategy and management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate”, “believe”, “estimate”, “expect” and “intend” and words or phrases of similar meaning, with respect to SaviBank or management , are intended to help identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe that management’s expectations, as reflected in the forward-looking statements, are reasonable, we cannot assure readers that these expectations will prove to be correct. Forward-looking statements are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as set forth in the forward-looking statements. These risks and uncertainties include our ability to maintain or increase our market share or net interest margins, and to execute our go-to-market and growth strategies. In addition, actual results may be affected by our ability to compete on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy, as these factors relate to the cost of our funds and the performance of our assets. In addition, there are inherent risks in the banking industry related to loan recovery and changes in interest rates. Many of these risks, as well as other risks, may have a material adverse effect on our business and operations.
Michal D. Cann