BERWICK, Pa., — First Keystone Corporation, parent of First Keystone Community Bank, has completed a $32.5 million private placement of fixed-to-floating rate subordinated notes due in 2036.
The company plans to use the proceeds to redeem $25 million in outstanding subordinated notes maturing Dec. 31, 2030, and for general corporate purposes. The new notes are structured to qualify as Tier 2 regulatory capital.
First Keystone may redeem the new notes, in whole or in part, on interest payment dates beginning Sept. 30, 2031. Earlier redemption of the entire issue is permitted under specified conditions.
The offering was sold under an exemption from securities registration requirements. The notes are not deposits and are not insured by the Federal Deposit Insurance Corporation.