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Community banks are taking a fresh look at subordinated debt as a flexible, cost-effective way to strengthen capital in today’s challenging environment. With rising funding costs and limited equity options, subordinated debt offers a non-dilutive path to support growth, improve capital ratios, and enhance balance sheet resilience.

As funding dynamics shift and credit uncertainty lingers, community banks need more flexibility than ever.

With interest rates still elevated and regulatory clarity emerging, now is a strategic time for community banks to revisit subordinated debt—a flexible, non-dilutive capital tool that can stabilize funding costs and support long-term growth. Bankers’ Bank offers expert guidance to help institutions structure and place offerings tailored to their financial goals.

Bankers’ Bank, is pleased to announce the completion of a $16.0 million private placement of fixed-to-floating rate subordinated notes for Emmetsburg Bank Shares, Inc.

Banks across the United States are entering 2025 with a sharp focus on planning and meeting their capital needs. With the economic environment continuing to evolve, many banks are analyzing opportunities for growth and determining the most effective strategies to strengthen their financial positions.

Community banks should have a segmentation strategy for their investment portfolio. Discover best practices to follow for your bank.