Nexbank has just completed a private placement of fixed-to-floating rate subordinated notes in the amount of $54 million. This brings the total for the equity and debt Nexbank has raised to $283 million. The subordinated notes were purchased by institutional and high-net worth individuals.
The fixed interest for the notes is 6.375% for the first five years. They are also non-callable for five years. The bonds will be at a floating rate after the initial five years and the rate will be based on a spread above the 3-month LIBOR or 458.5 basis points. The Kroll Bond Rating Agency has rated these notes BBB- as they qualify as 2-Tier capital.
Nexbank Capital Inc. handles commercial banking, institutional services and mortgage banking. It is a Dallas, Texas-based financial services institution. It serves its nationwide customers by using its 8.4 billion in assets as a stabilizing resource to offer commercial lending, treasury management, credit services and mortgage lending.
Nexbank is a regional bank with a charter that goes back to 1922. As the fourth largest bank in Dallas, it has a legal lending limit of $137 million and the capacity to loan larger amounts in syndication with other banks. Nexbank is an SBA preferred lender.
Nexbank services one in four residential mortgages in Texas with many of its loans being for Fannie Mae, Freddie Mac, Ginnie Mae financing. Nexbank has won notable recognition in the banking industry with awards for being the Best Performing U.S. Community Bank. It was the number five Return of Equity Banking institution and it was the number 10 best performing bank.
For 100 years, Nexbank has had a client-focused approach to serving its individual clients. Deposited funds are FDIC-insured for up to $250,000 in multiple ownership categories. Those accounts include checking, savings, money market and certificate of deposit accounts. As with all banking institutions, Nexbank does not offer FDIC-insurance for investment accounts. Nexbank also offers online banking and mobile banking to its customers.