NexBank Capital, Inc., the financial services branch of NexBank, announced the completion of a $54 million sale of subordinated debt on September 29, 2017. Sandler O’Neill & Partners, L. P. was the only agent for the offering of the notes that ended on September 19, 2017. The offering was private.
The fixed to floating rate bonds were offered to selected private high net worth individuals and institutions only. NexBank provided investors with a guaranteed rate of 6.375% for the first five years of ownership. Subsequent proceeds from the bonds will be based on a floating rate of 458.5 basis points above the current three-month London Inter-bank Offered Rate. Kroll Bond Rating Agency rated the notes at BBB-. The notes qualify as Tier 2 capital and meet all applicable regulations.
The bonds cannot be traded on any U. S. exchange. The notes cannot be sold in the United States. The funds that NexBank derives from the notes are intended for unspecified general corporate purposes. This bond issue is 19 percent of the equity and debt raised by such means by NexBank Capital, Inc. since 2016.
NexBank is considered to be the fourth largest bank in Dallas, Texas and the tenth largest Bank in Texas based on assets. The Dallas based bank is divided into three main functions. These are commercial banking, mortgage banking, and institutional services.
NexBank has assets of $8.4 billion and deposits of slightly more than $6 billion. The loan portfolio of $5.2 billion is 60 percent single family loans, 21 percent commercial real estate, and 19 percent commercial and industrial loans.
Return on average equity was 23 percent in 2107. Mortgage banking has doubled in dollar volume in the last two years.
NexBank has been recognized by numerous publications for its growth and performance in the last two years. Nexbank’s awards include 2016 Best-Performing U. S. Community Bank by S&P and the second best residential real estate lender in the United States by Bank Director Magazine.
NexBank is very active n the communities that it serves. The bank has been a leader in providing housing and loans that fits the need of veterans in the Dallas area and Texas. NexBank trains young people to manage their money in local school programs.