University Bancorp closes $25 million private placement of subordinated notes due 2036

The bank says net proceeds from the $25 million fixed-to-floating subordinated notes are earmarked for general corporate purposes, including boosting bank subsidiary common equity, redeploying capital or redeeming notes. Notes pay 8.125% fixed for five years, then float quarterly at three-month SOFR plus a spread of 355 basis points; callable from Oct. 30, 2031.