County Bancorp in Manitowoc, Wis., has raised $30 million in subordinated debt through a private placement.
The $1.5 billion-asset company said Wednesday it will use the money to fund growth strategies for its subsidiary, Investors Community Bank, which provides agricultural, business and personal banking services. More banks could turn to subordinated debt to help fund acquisitions and other expansion plans if there is prolonged volatility in the stock market.
County Bancorp said in April that it had record first-quarter profit as its total loans increased by 11%, to $1.2 billion. It acquired Fox River Valley Bancorp in Appleton, Wis., in May 2016.
“Response was extremely positive, and people enjoyed hearing our story,” Tim Schneider, the president of County Bancorp and CEO of Investors Community, said in a press release. “This new capital will be integral in fueling future growth for our organization.”
For the first five years, the subordinated debt, which is due in 2028, will have an interest rate of roughly 5.9%, which will then switch to a floating rate.
Sandler O’Neill served as the lead placement agent and Hovde Group served as the co-placement agent for the offering.