White River Bancshares Company Completes Private Placement of $25.0 Million of Subordinated Debt

Rhea-AI Summary

White River Bancshares (OTCQX: WRIV) completed a private placement of $25.0 million in fixed-to-floating subordinated notes due Feb 29, 2036. The Notes carry a fixed rate of 6.625% through Feb 28, 2031, then reset to 3-month SOFR + 325 bps. Proceeds will be used to redeem existing subordinated debt and for general corporate purposes. The Notes are structured to qualify as Tier 2 capital and are redeemable, in whole or part, on or after Feb 28, 2031.

Positive

• $25.0M of subordinated notes added to capital base
• Notes structured to qualify as Tier 2 capital
• Proceeds intended to redeem existing subordinated debt

Negative

• Fixed 6.625% coupon through 2031 increases near-term interest cost
• Floating rate thereafter at SOFR + 325 bps exposes future interest expense to market rates

FAYETTEVILLE, Ark., Feb. 27, 2026 (GLOBE NEWSWIRE) -- White River Bancshares Company (OTCQX: WRIV), (the “Company”) the holding company for Signature Bank of Arkansas (the “Bank”), today announced that it has completed the private placement (the “Private Placement”) of $25.0 million in fixed-to-floating rate subordinated notes due February 29, 2036 (the “Notes”) to certain qualified institutional buyers and institutional accredited investors. The Company intends to use the net proceeds from this Private Placement to redeem existing subordinated debt and for general corporate purposes.

The Notes have been structured to qualify as Tier 2 capital for the Company for regulatory purposes and will bear interest at a fixed rate of 6.625% per annum until February 28, 2031. For the remainder of the term, the Notes, which mature on February 29, 2036, will bear interest at a rate equal to 3-month Secured Overnight Financing Rate (SOFR) plus 325 basis points. The Notes are redeemable by the Company at its option, in whole or in part, on or after February 28, 2031, or in whole but not in part under certain other circumstances.

Performance Trust Capital Partners, LLC (the “Placement Agent”) served as the sole placement agent for the Private Placement. Holland & Knight LLP served as legal counsel to the Company and Nelson Mullins Riley & Scarborough LLP served as legal counsel to the Placement Agent

About White River Bancshares Company

White River Bancshares Company is the single bank holding company for Signature Bank of Arkansas, headquartered in Fayetteville, Arkansas. The Bank has locations in Fayetteville, Springdale, Bentonville, Rogers, Brinkley, Harrison and Jonesboro, Arkansas. Founded in 2005, Signature Bank of Arkansas provides a full line of financial services to small businesses, families and farms. White River Bancshares Company (OTCQX: WRIV), trades on the OTCQX® Best Market.  

Forward Looking Statements

This press release contains statements about future events. These forward-looking statements, which are based on certain assumptions of management of the Company and the Bank and describe our future plans, strategies and expectations, can generally be identified by use of forward-looking terminology such as “may,” “will,” “believe,” “plan,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions or the negative of those terms. Our ability to predict results of future events and the actual effect of future plans or strategies are inherently uncertain, and actual results may differ materially from those predicted in such forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects or that could affect the outcome of such forward-looking statements include, but are not limited to, changes in interest rates; the economic health of the local real estate market; general economic conditions; credit deterioration in our loan portfolio that would cause us to increase our allowance for loan losses; legislative or regulatory changes; technological developments; monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of our loan and securities portfolios; demand for loan products in our market areas; deposit flows and costs of capital; competition; retention and recruitment of qualified personnel; demand for financial services in our market areas; and changes in accounting principles, policies, and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. The Company does not undertake and specifically declines any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Contact:	Scott Sandlin, Chief Strategy Officer 479-684-3754

FAQ

What did White River Bancshares (WRIV) announce on February 27, 2026 about subordinated debt?

They completed a private placement of $25.0 million in subordinated notes due Feb 29, 2036. According to the company, proceeds will redeem existing subordinated debt and be used for general corporate purposes.

What interest rate does WRIV's $25 million subordinated note pay and when does it reset?

The Notes pay a fixed 6.625% per annum through Feb 28, 2031, then reset to 3-month SOFR + 325 bps. According to the company, the floating rate applies for the remainder of the term to maturity Feb 29, 2036.

How will the new WRIV subordinated notes affect the company's regulatory capital?

The Notes are structured to qualify as Tier 2 capital for regulatory purposes. According to the company, this treatment strengthens the company's regulatory capital base without issuing common equity.

When can White River Bancshares redeem the subordinated notes (WRIV)?

The company may redeem the Notes, in whole or in part, on or after Feb 28, 2031. According to the company, there are also specific circumstances allowing whole-only redemption earlier under defined conditions.

Who placed WRIV's $25 million subordinated notes and who provided legal counsel?

Performance Trust Capital Partners served as sole placement agent. According to the company, Holland & Knight served as company counsel and Nelson Mullins served as counsel to the placement agent.

What will White River Bancshares use the net proceeds from the WRIV private placement for?

Net proceeds will be used to redeem existing subordinated debt and for general corporate purposes. According to the company, the redemption is a primary intended use of funds from the private placement.