HARRISBURG, Pa., Oct. 6, 2020 /PRNewswire/ -- Riverview
Financial Corporation (the "Company" or "Riverview") (NASDAQ: RIVE), the bank
holding company for Riverview Bank (the "Bank"), today
announced the completion of its private placement of $25 million of its 5.75% Fixed to Floating Rate
Subordinated Notes (the "Notes") to certain qualified institutional
buyers and accredited institutional investors.
The Notes will have a maturity date of October 15, 2030 and initially bear interest,
payable semi-annually, at a fixed annual rate of 5.75% per annum
until October 15, 2025.
Commencing on that date, the interest rate applicable to the
outstanding principal amount due will be reset quarterly to an
interest rate per annum equal to the then current three-month
secured overnight financing rate (SOFR) plus 563 basis points,
payable quarterly until maturity. The Company may redeem the Notes
at par, in whole or in part, at its option, anytime beginning on
October 15, 2025. The Notes are
intended to qualify as Tier 2 capital for regulatory capital
purposes for the Company.
The Company intends to use the net proceeds from the private
placement to enhance the Bank's capital to support growth, for
general corporate purposes and potential strategic
opportunities.
Brett D. Fulk, President and CEO
of the Company, stated, "We are very pleased with the interest in
our offering and its completion on favorable terms. The primary
purpose of the offering is to shore up the safety and soundness of
the Bank's capital position given the uncertain impact of the
COVID-19 pandemic and to potentially enable us to take advantage of
opportunities to grow and enhance our market share."
Performance Trust Capital Partners, LLC served as the placement
agent for the offering. Luse Gorman,
PC served as legal counsel to Riverview Financial
Corporation and Holland &
Knight LLP served as legal counsel to Performance Trust Capital
Partners, LLC.
This press release is for informational purposes only and shall
not constitute an offer to sell, or the solicitation of an offer to
buy, any security, nor shall there by 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
such jurisdiction. The Notes have not been registered under the
Securities Act and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements. The
indebtedness evidenced by the Notes is not a deposit and is not
insured by the Federal Deposit Insurance Corporation or any other
government agency or fund.
About Riverview Financial Corporation
Riverview Financial Corporation is the parent company of
Riverview Bank. An independent community bank, Riverview Bank
serves the Pennsylvania market
areas of Berks, Blair, Bucks,
Centre, Clearfield, Cumberland, Dauphin, Huntingdon, Lebanon, Lehigh, Lycoming, Perry, Schuylkill and Somerset Counties through 27 community banking
offices and 3 limited purpose offices. Each office, interdependent
with the community, offers a comprehensive array of financial
products and services to individuals, businesses, not-for-profit
organizations and government entities. Riverview's business philosophy includes
offering direct access to senior management and other officers and
providing friendly, informed and courteous service, local and
timely decision making, flexible and reasonable operating
procedures and consistently applied credit policies. The Company's
common stock trades on the NASDAQ Global Market under the symbol
"RIVE". The Investor Relations site can be accessed at
https://www.riverviewbankpa.com/.
Safe Harbor Forward-Looking Statements:
We make statements in this press release, and we may from time
to time make other statements regarding our outlook or expectations
for future financial or operating results and/or other matters
regarding or affecting Riverview Financial Corporation, Riverview
Bank, and its subsidiaries (collectively, "Riverview") that may be considered
"forward-looking statements" as defined in Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such forward-looking
statements may be identified by the use of such words as "believe,"
"expect," "anticipate," "should," "planned," "estimated," "intend"
and "potential." For these statements, Riverview claims the protection of the
statutory safe harbors for forward-looking statements.
Riverview cautions you that a
number of important factors could cause actual results to differ
materially from those currently anticipated in any forward-looking
statement. Such factors include, but are not limited to: the impact
of the COVID-19 outbreak, prevailing economic and political
conditions, particularly in our market area; credit risk associated
with our lending activities; changes in interest rates, loan
demand, real estate values and competition; changes in accounting
principles, policies, and guidelines; changes in any applicable
law, rule, regulation or practice with respect to tax or legal
issues; and other economic, competitive, governmental, regulatory
and technological factors affecting Riverview's operations, pricing, products
and services and other factors that may be described in
Riverview's periodic
reports as filed with the Securities and Exchange Commission
from time to time. Readers are cautioned against placing
undue reliance on any such forward-looking statements. The
Company's past results are not necessarily indicative of future
performance.
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SOURCE Riverview Financial Corporation