Signature Bancorporation, Inc. Closes Private Placement of $15 Million Subordinated Notes

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Signature Bank Intends to Foster Organic Growth in the Chicago Market with Influx of New Capital

We are pleased with the high level of interest in our offering and that investors share in our belief in Signature’s business model. This new capital will allow Signature Bank to continue to meet the needs of Chicago area’s closely-held businesses.

Signature Bancorporation, Inc. (the “Company”), parent company of Rosemont-based Signature Bank (the “Bank”), announced today it has completed a $15 million private placement of fixed-to-floating rate subordinated notes. The Company intends to use the capital to foster the Bank’s ongoing organic growth in the Chicago market, to repay an existing holding company revolving line of credit, and for general corporate purposes.

The subordinated notes will bear interest at 5.95% for 5 years and then the interest rate will reset quarterly at three-month LIBOR + 300 basis points for the remaining 5 years. Unless redeemed earlier, the notes will mature on June 1, 2028. The Company may, at its option beginning June 1, 2023, redeem the notes. Proceeds from the notes meet the requirements to qualify as regulatory Tier 2 capital for the Company and as regulatory Tier 1 capital for the portion of the net proceeds that are invested in the Bank.

Order demand in the offering was 73% oversubscribed by investors, and coupon pricing represents the lowest spread over the 10-year treasury by an unrated, privately-placed subordinated debt offering in the Midwest. This marks the third successful private capital raise since Signature Bank was founded in 2006 with a sizeable $23.8 million de novo equity private offering.

Bryan Duncan, Co-Founder and Executive Vice President of Signature Bank, commented, “We are pleased with the high level of interest in our offering and that investors share in our belief in Signature’s business model. This new capital will allow Signature Bank to continue to meet the needs of Chicago area’s closely-held businesses.”

Sandler O’Neill + Partners, L.P. acted as sole placement agent and was represented by Silver, Freedman, Taff & Tiernan LLP. Vedder Price P.C. served as legal counsel to the Company in the offering.

About Signature Bank

Signature Bank is a relationship-based commercial bank wholly owned by Signature Bancorporation, Inc., a privately funded, locally owned bank holding company founded in 2006. Headquartered in Rosemont, IL, Signature Bank provides accessible, strategic, and highly individualized commercial banking services to closely held companies, as well as full-service retail banking capabilities. Technology-driven and well-capitalized, Signature Bank is currently the fastest growing, independently owned business bank in the Chicagoland area. Visit Signature Bank online at http://www.signaturebank.bank.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of such term in the federal securities laws. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking statements presented in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by such forward-looking statements. Any forward-looking statements presented herein are made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

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Julie Simon
@SignatureBnkChi
since: 06/2017
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