Subsequent Events

6 Months Ended

Jun. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On July 29, 2020, the board of directors of the Company declared a cash dividend of $0.22 per share payable on September 15, 2020 to shareholders of record as of the close of business on September 1, 2020.

On July 28, 2020, the Company completed a private placement offering of $65.0 million of subordinated debt with registration rights. The 5.75% fixed-to-floating rate subordinated notes are due July 2030. For regulatory capital purposes, the subordinated notes have been structured to qualify initially as Tier 2 Capital for the Company.

On July 28, 2020, the Company paid, with interest, the total amount that was outstanding under the Company's revolving credit facility, which was $10.0 million as of June 30, 2020.

Effective October 28, 2020, the Company plans to consolidate its branch office in Newport, Minnesota into its nearby branch office in South St. Paul, Minnesota. This branch consolidation is part of the Company's strategy to improve operating efficiency. The Company estimates the branch consolidation will reduce its annual operating expenses by approximately $360 thousand.

The Company has evaluated events that have occurred subsequent to June 30, 2020 and has concluded there are no other subsequent events that would require recognition in the accompanying consolidated financial statements.