Codorus Valley Bancorp, Inc. Completes $31.0 Million Subordinated Debt Offering

YORK, Pa., Dec. 09, 2020 (GLOBE NEWSWIRE) -- Codorus Valley Bancorp, Inc. (“Codorus Valley” or the “Company”) (NASDAQ: CVLY), the parent company for PeoplesBank, A Codorus Valley Company (“PeoplesBank”), which is the parent company of PeoplesWealth Advisors, today announced the completion of a private placement of $31.0 million in aggregate principal amount of 4.50% Fixed-to-Floating Rate Subordinated Unsecured Notes due 2030 (the “Notes”). The Company intends to utilize the net proceeds for general corporate purposes.

“We are pleased to announce the successful completion of our subordinated debt offering under favorable terms. This debt offering will strengthen the Company’s already strong capital position, provide additional flexibility as we grow our franchise and it will enhance our ability to execute on our long-term business strategies,” said Larry J. Miller, Chairman, President and Chief Executive Officer of Codorus Valley.   

The Notes are structured to qualify as Tier 2 capital for Codorus Valley for regulatory capital purposes. The Notes will initially bear a fixed interest rate of 4.50% until December 2025, after which time until maturity on December 9, 2030, the interest rate will reset quarterly to an annual floating rate equal to 90-day average SOFR (Secured Overnight Financing Rate) plus 404 basis points. The Notes are redeemable by the Company at its option, in whole or in part, on or after December 9, 2025. Any redemption will be at a redemption price equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest. The Notes are not subject to redemption at the option of the holders.

Boenning & Scattergood, Inc. served as the sole placement agent for the offering. Stevens & Lee, P.C. served as legal counsel to Codorus Valley and Barley Snyder served as legal counsel to the placement agent.

The offer and sale of the Notes has not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy, any security, nor shall there be any sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The indebtedness evidenced by the unsecured Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation or any other government agency or fund.