GAHANNA, Ohio, Nov. 12, 2015 (GLOBE NEWSWIRE) -- Heartland BancCorp ("the company," and "the bank") (OTCQB:HLAN), today announced the successful completion of its private placement to accredited investors of $5.4 million in aggregate principal amount of fixed and variable rate subordinated promissory notes (the "Notes"). The weighted interest rate for the Notes is 4.896%, calculated using the Treasury rate from the most recent Federal Reserve Statistical Release for the variable rate notes. The Notes are non-callable for five years and have a stated maturity of November 12, 2025. Proceeds from the offering will be used for general corporate purposes, including, but not limited to, adding capital to enhance the bank's already "well capitalized" status and supporting the double digit balance sheet growth it has experienced in recent years.
"This growth capital gives us an opportunity to build out our business plan and meet the growing demand from our clients and the marketplace," said G. Scott McComb, Chairman, President and CEO. "The Notes are a cost effective way to raise regulatory capital, give a good return to our investors, and does not dilute current shareholders."
The company was advised by Hunton & Williams LLP in connection with the private placement.
This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the Notes or any other security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful. The Notes offered and sold by the Company have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold absent registration or an exemption from registration.
About Heartland BancCorp
Heartland BancCorp is a registered Ohio bank holding company and the parent of Heartland Bank, which operates twelve full-service banking offices. Heartland Bank, founded in 1911, provides full service commercial, small business, and consumer banking services; alternative investment services; insurance services; and other financial products and services. Heartland Bank is a member of the Federal Reserve, a member of the FDIC and an Equal Housing Lender. Heartland BancCorp is currently quoted on the OTC Markets (OTCQB) under the symbol HLAN. Learn more about Heartland Bank at HeartlandBank.com.
Safe Harbor Statement
This release contains statements which, to the extent that they are not recitations of historical fact may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Such forward-looking statements may include financial and other projections as well as statements regarding the Company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the Company's underlying assumptions. Persons reading this press release are cautioned that such statements are only predictions, and that the Company's actual future results or performance may be materially different.
Such forward-looking statements involve known and unknown risks and uncertainties. A number of factors, many of which are beyond the Company's control, could cause our actual results, events or developments, or industry results, to be materially different from any future results, events or developments expressed, implied or anticipated by such forward-looking statements, and so our business and financial condition and results of operations could be materially and adversely affected. Such factors include, among others, our need for capital; our ability to control operating costs and expenses, and to manage loan and lease delinquency rates; the credit risks of lending activities and overall quality of the composition of our loan, lease and securities portfolio; the impact of economic conditions, consumer and business spending habits, and real estate market conditions on our business and in our market area; changes in the levels of general interest rates, deposit interest rates, or net interest margin and funding sources; changes in banking regulations and policies and the possibility that any banking agency approvals we might require for certain activities will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to implement our business plans; changes in accounting policies and practices; the inability of key third-party providers to perform their obligations to us; our ability to attract and retain key personnel; competition in our marketplace; war or terrorist activities, and; material differences in the actual financial results, cost savings and revenue enhancements associated with any acquisitions. All forward-looking statements and information set forth herein are based on management's current beliefs and assumptions as of the date hereof and speak only as of the date they are made. The Company does not undertake to update forward-looking statements, except as may be required by law.
CONTACT: G. Scott McComb, Chairman, President & CEO Heartland BancCorp 614-337-4600