Oak View Bankshares, Inc. Completes $10 Million Subordinated Notes Offering

Rhea-AI Summary

Oak View Bankshares (OTCID: OAKV) completed a private placement of $10.0 million in 7.0% fixed-to-floating subordinated notes due October 17, 2035. The Notes pay a fixed coupon of 7.00% from October 17, 2025 to October 17, 2030 (semi‑annual), then reset quarterly to 3‑month SOFR + 361 bps payable quarterly. The Company may redeem the Notes on or after the fifth anniversary or upon certain specified events. Net proceeds are intended for general corporate purposes. The offering targeted qualified institutional buyers and institutional accredited investors; Performance Trust Capital Partners served as sole placement agent.

Positive

• $10.0M subordinated capital raised
• Fixed 7.00% coupon through October 17, 2030
• Notes count as long‑term subordinated funding until 2035

Negative

• Post‑2025 rate resets to SOFR + 361 bps, increasing cost risk
• 7.00% fixed coupon creates near‑term cash interest burden
• Long maturity until Oct 17, 2035 extends leverage period

WARRENTON, VA / ACCESS Newswire / October 20, 2025 / Oak View Bankshares, Inc. (the "Company") (OTCID:OAKV), parent company of Oak View National Bank (the "Bank"), announced it has completed a private placement of $10 million of 7.0% fixed-to-floating rate subordinated notes due October 17, 2035 (the "Notes") to certain qualified institutional buyers and institutional accredited investors (the "Private Placement"). The Company intends to use the net proceeds from the Private Placement for general corporate purposes.

The Notes will initially bear interest at 7.00% per year, from and including October 17, 2025, to but excluding October 17, 2030, payable semi-annually in arrears. From October 17, 2030, through maturity or early redemption, the interest rate will reset quarterly to an interest rate equal to three-month term SOFR plus 361 basis points, payable quarterly in arrears. On or after the fifth anniversary of the original issue date through maturity, the Company has the option to redeem the Notes, in whole or in part, on any scheduled interest payment date. The Company may also redeem the Notes in whole at any time following certain specified events. The Notes will mature on October 17, 2035, unless earlier redeemed.

Michael A. Ewing, Chairman and Chief Executive Officer of the Company, commented, "We are thrilled to have the support of an investor group who subscribed to our offering at an attractive pricing level."

Performance Trust Capital Partners, LLC served as sole placement agent. Williams Mullen served as legal counsel to the Company. Troutman Pepper Locke LLP served as legal counsel to the placement agent.

About Oak View Bankshares, Inc. and Oak View National Bank

Oak View Bankshares, Inc. is the parent bank holding company for Oak View National Bank, a locally owned and managed community bank serving Fauquier, Culpeper, Rappahannock, and surrounding counties. For more information about Oak View Bankshares, Inc. and Oak View National Bank, please visit our website at www.oakviewbank.com. Member FDIC.

For additional information, contact Tammy Frazier, Executive Vice President & Chief Financial Officer, Oak View Bankshares, Inc., at 540-359-7155.

Cautionary Note Regarding Forward-Looking Statements

Any statements in this release about expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "would," "predict," "potential," "believe," "likely," "expect," "anticipate," "seek," "estimate," "intend," "plan," "project" and similar expressions. Accordingly, these statements involve estimates, assumptions, and uncertainties, and actual results may differ materially from those expressed in such statements. The following factors could cause the Company's actual results to differ materially from those projected in the forward-looking statements made in this document: changes in assumptions underlying the establishment of allowances for credit losses, and other estimates; the risks of changes in interest rates on levels, composition and costs of deposits, loan demand, and the values and liquidity of loan collateral, securities, and interest sensitive assets and liabilities; the effects of future economic, business and market conditions; legislative and regulatory changes, including changes in banking, securities, and tax laws and regulations and their application by our regulators; the Company's ability to maintain adequate liquidity by retaining deposit customers and secondary funding sources, especially if the Company's or banking industry's reputation becomes damaged; computer systems and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance, or other disruptions despite security measures implemented by the Company; risks inherent in making loans, such as repayment risks and fluctuating collateral values; governmental monetary and fiscal policies; changes in accounting policies, rules and practices; competition with other banks and financial institutions, and companies outside of the banking industry, including companies that have substantially greater access to capital and other resources; demand, development and acceptance of new products and services; problems with technology utilized by the Company; changing trends in customer profiles and behavior; success of acquisitions and operating initiatives, changes in business strategy or development of plans, and management of growth; reliance on senior management, including the ability to attract and retain key personnel; and inadequate design or circumvention of disclosure controls and procedures or internal controls. These factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements made by the Company, and you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and the Company does not undertake any obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for the Company to predict which will arise. In addition, the Company cannot assess the impact of each factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

SOURCE: Oak View Bankshares, Inc.

View the original press release on ACCESS Newswire

FAQ

What did Oak View Bankshares (OAKV) announce on October 20, 2025?

The company completed a private placement of $10 million 7.0% subordinated notes due Oct 17, 2035.

What interest will OAKV subordinated notes pay through October 17, 2030?

The Notes pay a fixed 7.00% per year, payable semi‑annually from Oct 17, 2025 to Oct 17, 2030.

How will the OAKV notes' interest be determined after October 17, 2030?

From Oct 17, 2030 the rate resets quarterly to 3‑month SOFR plus 361 basis points, payable quarterly.

When can Oak View Bankshares redeem the OAKV subordinated notes?

The company may redeem the Notes in whole or part on or after the fifth anniversary of issuance or after specified events.

What will Oak View Bankshares use the proceeds from the OAKV offering for?

Net proceeds are intended for general corporate purposes.