Overview
The Barack Ferrazzano Financial Institutions Group acted as legal counsel to First Ottawa Bancshares, Inc. (OTC Pink: FOTB) (“First Ottawa”), parent company of The First National Bank of Ottawa and its divisions (the "Bank"), in the private placement of $24.25 million in fixed-to-floating rate subordinated notes due September 2030 to certain accredited investors.
The notes have been structured to qualify as Tier 2 capital for First Ottawa under bank regulatory guidelines. Proceeds from the sale of the notes will be utilized to support regulatory capital ratios and for general corporate purposes, including growth initiatives at the Bank.
"We are pleased to announce the successful completion of our subordinated debt offering at terms that are favorable to our company," stated First Ottawa President and CEO Steven M. Gonzalo. "The portion of this new capital that we downstream to our Bank is leverageable, Tier 1 capital for the Bank, which will be integral to fueling the growth that we strategically envision for our organization. Through the issuance of these Notes, we have cost-effectively increased our capital levels without diluting our current shareholders."
Barack Ferrazzano's team was led by Abdul R. Mitha and John E. Freechack. Since March, the Financial Institutions Group has been engaged in 20 such offerings totaling over $1.5 billion in capital for the industry, many of which are still ongoing.
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About First Ottawa Bancshares, Inc.
First Ottawa Bancshares, Inc. is a community-based bank holding company headquartered in Ottawa, Illinois, and is the sole shareholder of The First National Bank of Ottawa. As of June 30, 2020, The First National Bank of Ottawa had total assets of approximately $786 million. In 2020, The First National Bank of Ottawa celebrated 155 years of continuous service, making it one of the most senior banks in the United States.