On December 17, 2021, Union Financial Corporation (“Union”), the holding company for Union Bank, announced the closing of a private placement of $6.0 million in aggregate principal amount of its 3.50% fixed-to-floating rate subordinated notes due 2031 (the “Notes”). The Company intends to use the net proceeds from the Notes for general corporate purposes.
The Notes will initially bear interest at a fixed interest rate of 3.50% per annum until December 15, 2026, after which time the interest rate will reset quarterly to an interest rate per annum equal to Three-Month Term SOFR plus 243 basis points. The Notes will mature on December 15, 2031.
UNION FINANCIAL CORPORATION AND UNION BANK
Union Financial Corporation is the holding company for Union Bank and was formed in 1987.
Union Bank is headquartered in Lake Odessa, MI and offers full-service banking products and services to local communities in Ionia, Clinton, Eaton, Barry, and Kent counties. Its branch locations are bookended by two prominent Michigan markets – Grand Rapids and Lansing.
In addition to traditional bank products, in 2019 Union began to offer banking products and services to cannabis and marijuana-related business (“MRB”) throughout Michigan to capitalize on the legalization of recreational marijuana in the state.