First Ottawa Bancshares’ $24.25 Million Subordinated Notes Offering


Barack Ferrazzano acted as legal counsel to First Ottawa Bancshares in the offering.

First Ottawa Bancshares, Inc. (OTC Pink: FOTB) (“First Ottawa”), parent company of The First National Bank of Ottawa and its divisions (the “Bank”), executed the private placement of $24.25 million in fixed-to-floating rate subordinated notes due September 2030 to certain accredited investors.

The notes have been structured to qualify as Tier 2 capital for First Ottawa under bank regulatory guidelines. Proceeds from the sale of the notes will be utilized to support regulatory capital ratios and for general corporate purposes, including growth initiatives at the Bank.

First Ottawa Bancshares, Inc. is a community-based bank holding company headquartered in Ottawa, Illinois, and is the sole shareholder of The First National Bank of Ottawa. As of June 30, 2020, The First National Bank of Ottawa had total assets of approximately $786 million. In 2020, The First National Bank of Ottawa celebrated 155 years of continuous service, making it one of the most senior banks in the United States.

Barack Ferrazzano’s team advising First Ottawa was led by Abdul R. Mitha (Picture) and John E. Freechack.

Involved fees earner: John Freechack – Barack Ferrazzano; Abdul Mitha – Barack Ferrazzano;

Law Firms: Barack Ferrazzano;

Clients: First Ottawa Bancshares;

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Author: Ambrogio Visconti