SALISBURY, Md., June 25, 2020 (GLOBE NEWSWIRE) -- Delmar Bancorp (NASDAQ: DBCP), a multi-bank holding company, today announced that it has completed a private placement of $17.8 million in fixed-to-floating rate subordinated notes due 2030. The Notes have been structured to qualify as Tier 2 capital under bank regulatory guidelines, and the proceeds from the sale of the Notes will be utilized for general corporate purposes, including investments in either of the Company’s two wholly-owned subsidiary banks as regulatory capital, the potential repayment or redemption of the Company’s existing subordinated debt, providing capital to support organic growth or growth through strategic acquisitions, and capital expenditures. In connection with this subordinated notes offering, the Company was advised by Piper Sandler & Co. as financial advisor, and Troutman Sanders LLP as legal counsel.
The Notes will initially bear interest at 6.000% per annum, beginning June 25, 2020 through June 30, 2025, payable semi-annually in arrears. From July 1, 2025 through June 30, 2030, or up to an early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month SOFR plus 590 basis points, payable quarterly in arrears. Beginning on July 1, 2025 through maturity, the Notes may be redeemed, at the Company’s option, on any scheduled interest payment date. The Notes will mature on July 1, 2030.
About Delmar Bancorp
Delmar Bancorp is the holding company for The Bank of Delmarva and Virginia Partners Bank. The Bank of Delmarva commenced operations in 1896. The Bank of Delmarva’s main office is in Seaford, Delaware and it conducts full service commercial banking through eleven branch locations in Maryland and Delaware, and three branches, operating under the name Liberty Bell Bank, in the South Jersey/Philadelphia metro market. The Bank of Delmarva focuses on serving its local communities, knowing its customers, and providing superior customer service. Virginia Partners Bank, headquartered in Fredericksburg, Virginia, was founded in 2008 and has three branches in Fredericksburg, Virginia. In Maryland, Virginia Partners Bank trades under the name Maryland Partners Bank (a division of Virginia Partners Bank), and operates a full service branch and commercial banking office in La Plata, Maryland and a Loan Production Office in Annapolis, Maryland. Virginia Partners Bank also owns a controlling stake in Johnson Mortgage Company, LLC, which is a residential mortgage company headquartered in Newport News, Virginia, with branch offices in Fredericksburg and Williamsburg, Virginia. For more information, visit www.bankofdelmarvahb.com and www.vapartnersbank.com.
