LIMERICK, PA — The Victory Bancorp, Inc. (OTCQX: VTYB), the holding company for The Victory Bank, has successfully closed a private placement of $4.65 million in fixed-to-floating rate subordinated notes. The funds will support the company’s strategic growth initiatives, expand its balance sheet flexibility, and strengthen regulatory capital ratios.
The subordinated notes will bear a fixed interest rate of 8.50% per year until December 31, 2026. After this date, the rate will adjust quarterly to the current three-month SOFR plus a spread. The notes mature on December 31, 2029, but may be redeemed at the company’s discretion, starting on the second anniversary of the issue date, during scheduled interest payment dates.
Joseph W. Major, Bank Leader and CEO of The Victory Bancorp, expressed confidence in the offering’s potential impact. “We are excited to announce the successful completion of our capital offering with attractive terms. This offering is a cost-effective, leverageable Tier 1 bank equity capital instrument that does not dilute the current shareholders,” Major said. “This capital is an important milestone so that Victory can continue to support the growth of our organization and strengthen our commitment to serving our local communities.”
Performance Trust Capital Partners acted as the placement agent for the transaction. Legal counsel for the company was provided by Kilpatrick Townsend & Stockton LLP, while Performance Trust Capital Partners was represented by Pillar+Aught.
This funding reinforces The Victory Bancorp’s long-term growth strategy and commitment to delivering value to shareholders and the communities it serves.
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