Kentucky-based Paducah Bank Shares completes $20M capital offering

Paducah Bank Shares Inc. in Kentucky, the holding company for Paducah Bank and Trust Co., completed the issuance of fixed- to floating-rate subordinated notes worth $10.0 million due in 10 years and another $10.0 million due in 15 years.

The subordinated debts, due in 2031 and 2036, are structured such that these qualify as Tier 2 capital at the holding company.

The 10-year notes will initially bear interest of 3.625% per year until but excluding March 31, 2026, and thereafter pay a quarterly floating rate equal to 90-day average secured overnight financing rate plus 315 basis points.

The 15-year notes will initially bear interest of 3.875% per year until but excluding March 31, 2031, and thereafter pay a quarterly floating rate equal to 90-day average Sofr plus 275 basis points.

The company intends to use the net proceeds to fund potential future strategic opportunities and for general corporate purposes.

Performance Trust Capital Partners served as the sole placement agent for Paducah Bank Shares in the transaction.