Subordinated Notes

6 Months Ended

Jun. 30, 2021

Subordinated Debt [Abstract]

Subordinated Notes

Subordinated Notes

On December 13, 2017, BMBC completed the issuance of $70.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2027 (the “2027 Notes”) in an underwritten public offering. On August 6, 2015, BMBC completed the issuance of $30.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2025 (the “2025 Notes”) in a private placement transaction to institutional accredited investors. The subordinated notes qualify as Tier 2 capital

for regulatory capital purposes, subject to applicable limitations.

The following tables detail the subordinated notes, including debt issuance costs, as of June 30, 2021, and December 31, 2020:

	June 30, 2021				December 31, 2020
(dollars in thousands)	Balance		Rate(1)(2)		Balance		Rate(1)(2)
Subordinated notes – due 2027	$	69,196	4.25	%	$	69,133	4.25	%
Subordinated notes – due 2025	29,777		3.46		29,750		3.29
Total subordinated notes	$	98,973			$	98,883

(1) The 2027 Notes bear interest at an annual fixed rate of 4.25% from the date of issuance until and including December 14, 2022, and will thereafter bear interest at a variable rate that will reset quarterly to a level equal to the then-current three-month LIBOR rate plus 2.050% until December 15, 2027, or any early redemption date.

(2) The 2025 Notes were bearing interest at an annual fixed rate of 4.75% from the date of issuance until and including August 14, 2020, and thereafter bear interest at a variable rate that resets quarterly to a level equal to the then-current three-month LIBOR rate plus 3.068% until August 15, 2025, or any early redemption date.