FineMark Holdings, Inc. Announces Completion of $21.3 Million Private Placement of Subordinated Notes

FORT MYERS, FL / ACCESSWIRE / November 23, 2020 / FineMark Holdings, Inc. (the "Company") (OTCQX:FNBT), the parent company of FineMark National Bank & Trust, is pleased to announce that the Company has completed a private placement of $21.3 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2030 (the "Notes") to certain qualified institutional buyers and accredited investors.

The Notes have been structured to qualify as Tier 2 capital for regulatory capital purposes. The Notes are unsecured and have a ten-year term, maturing November 30, 2030, and will bear interest at a fixed annual rate of 4.25%, payable semi-annually in arrears, until November 30, 2025. From and including November 30, 2025, the interest rate will reset quarterly to an interest rate per annum equal to the then current three-month Secured Overnight Financing Rate ("Three-Month SOFR"), plus a spread of 400.6 basis points, payable quarterly in arrears, provided, however, that, in the event the Three-Month SOFR is less than zero, the Three-Month SOFR shall be deemed to be zero. As provided in the Notes, under specified conditions, the interest rate on the Notes during the Floating Rate Period may be determined based upon a rate other than Three-Month SOFR. The Company may redeem the Notes, in whole or in part, on any interest payment date on or after November 30, 2025, or at any time in whole upon certain other specified events. The Notes received a BBB- rating from Kroll Bond Rating Agency.

The Company intends to use the net proceeds to refinance existing indebtedness, growth capital for FineMark National Bank & Trust and for other general corporate purposes.

FineMark Holdings, Inc. CFO Brian Eagleston stated "we are very pleased with the work completed by Commerce Street Capital and PNC FIG Advisory acting as joint-placement agents. Alston & Bird LLP served as legal counsel to the Company and Pillar+Aught served as legal counsel for the placement agents."

About the FineMark Holdings, Inc. and FineMark National Bank & Trust

FineMark Holdings, Inc. is the parent company of FineMark National Bank & Trust. Founded in 2007, FineMark National Bank & Trust is a nationally chartered bank, headquartered in Florida. Through its offices located in Florida, Arizona and South Carolina, FineMark offers a full range of financial services, including personal and business banking, lending services, trust and investment services. The Corporation's common stock trades on the OTCQX under the symbol FNBT. Investor information is available on the Corporation's website at www.finemarkbank.com.

Forward-Looking Statements

This press release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other expressions that predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, some of which are beyond our control. These risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

Some of the factors that might cause these differences include: weakness in national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets; volatility in national and international financial markets; reductions in net interest income resulting from interest rate volatility as well as changes in the balance and mix of loans and deposits; reductions in the market value or outflows of assets under administration; changes in the value of securities and other assets; reductions in loan demand; changes in loan collectability, default and charge-off rates; changes in the size and nature of our competition; changes in legislation or regulation and accounting principles, policies and guidelines; occurrences of cyber-attacks, hacking and identity theft; natural disasters; and changes in the assumptions used in making such forward-looking statements. Further, the adverse effect of the COVID-19 pandemic on the Company, its customers and the communities where it operates may adversely affect the Company's business, results of operations and financial condition for an indefinite period of time. You should carefully review all of these factors and you should be aware that there might be other factors that could cause these differences.

These forward-looking statements were based on information, plans and estimates at the date of this report. We assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

Contact:
Brian Eagleston
Chief Financial Officer
FineMark National Bank & Trust
239-461-5916
beagleston@finemarkbank.com

SOURCE: FineMark Holdings, Inc.

ReleaseID: 617996