Source: Quontic Bank Acquisition Corp
Quontic Bank Acquisition Corp., the ultimate parent company of Quontic Bank (together, “Quontic”), today announced the pricing and closing of a private placement (the “Offering”) of 8,000 shares of its 5.99% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A (the “Series A preferred stock”), with a liquidation preference of $1,000 per share, amongst an investor consortium (the “Consortium”).
Quontic achieved a remarkable lowest-priced coupon for any bank of its size conducted under a broadly marketed offering.
Quontic’s net proceeds from the offering will be used for general corporate purposes, including the increased ability to onboard greater community development loan production for Quontic’s balance sheet versus selling into the secondary market. The capital will also allow Quontic, as the Adaptive Digital Bank®, to accelerate its current mission to digitally transform to become an API first bank and further efforts to be a leader in providing mortgages for self-employed borrowers, immigrants, and low-income families.
“We are excited to announce this unique round of funding for Quontic, which provides us significantly cost-efficient Tier 1 capital that further supports our mission as an adaptive digital Community Development Financial Institution (“CDFI”) and provides the Consortium with meaningful CRA credit. We believe this type of investment is the first of its kind for a CDFI bank and we thank our new partners for their participation in the Offering,” said Steven Schnall, CEO and Chairman of Quontic. “The investment is a great way to commemorate our ten-year anniversary and signifies a meaningful vote of confidence in our business model, which reflects a transformed banking approach that adapts to the diversity of circumstances that exist in our customers’ lives while providing innovative banking services to elevate their financial strength.”
Performance Trust Capital Partners served as exclusive financial advisor to Quontic and sole placement agent in the Offering. Hunton Andrews Kurth LLP served as Quontic’s legal counsel in the Offering.