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Cornerstone Community Bancorp Announces Completion of $12 Million Subordinated Notes Offering

·3-min read

Cornerstone Community Bancorp (OTC Pink: CRSB), the holding company for Cornerstone Community Bank ("Bank"), announced today that it completed the issuance of $10 million in 10-year fixed-to-floating rate subordinated notes and $2 million in 15-year fixed-to-floating rate subordinated notes.

The 10-year notes initially bear interest at a fixed rate of 4.75% per annum, payable quarterly in arrears on each March 30, June 30, September 30 and December 30 commencing March 30, 2021 until November 30, 2025. From November 30, 2025 through November 30, 2030 (or up to an earlier redemption date), the interest rate shall reset quarterly to an interest rate per annum equal to Three-Month Term SOFR (or the applicable successor or substitute base rate) plus 452 basis points, payable quarterly in arrears. The notes are redeemable, in whole or in part, on November 24, 2025, on any interest payment date thereafter, and at any time upon the occurrence of certain events.

The 15-year notes initially bear interest at a fixed rate of 4.75% per annum, payable quarterly in arrears on each March 30, June 30, September 30 and December 30 commencing March 30, 2021 until November 30, 2030. From November 30, 2030 through November 30, 2035 (or up to an earlier redemption date), the interest rate shall reset quarterly to an interest rate per annum equal to Three-Month Term SOFR (or the applicable successor or substitute base rate) plus 414 basis points, payable quarterly in arrears. The notes are redeemable, in whole or in part, on November 24, 2030, on any interest payment date thereafter, and at any time upon the occurrence of certain events.

Cornerstone Community Bancorp intends to use proceeds from the offering for general corporate purposes, to include enhancing the Bank's capital ratios and supporting growth of the franchise, and potential future strategic opportunities.

Performance Trust Capital Partners, LLC served as sole placement agent for the private offering, and Gary Steven Findley & Associates served as Cornerstone Community Bancorp’s legal counsel. Craig Miller of Manatt, Phelps & Phillips, LLP provided legal counsel to the placement agent in connection with the offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities. The notes offered and sold in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration under the Securities Act and applicable state securities laws.

About Cornerstone Community Bancorp

Cornerstone Community Bancorp, a bank holding company headquartered in Red Bluff, California, serves the Red Bluff and Redding communities through its wholly-owned subsidiary, Cornerstone Community Bank with a headquarters office in Red Bluff and two banking offices in Redding. The Bank provides commercial banking services to small and mid-size businesses, including professional service firms, real estate developers and investors and not-for-profit organizations and to their owners and other individuals. Additional information about the Bank is available on its website at www.bankcornerstone.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20201124006052/en/

Contacts

Jeffrey P. Finck
President & CEO
530.222.1460

Patrick E. Phelan
Chief Financial Officer
530.222.1460