YORK, Pa., Dec. 09, 2020 (GLOBE NEWSWIRE) -- Codorus Valley Bancorp, Inc. (NASDAQ: CVLY), the parent company for PeoplesBank, A Codorus Valley Company, which is the parent company of PeoplesWealth Advisors, today announced the completion of a private placement of $31.0 million in aggregate principal amount of 4.50% Fixed-to-Floating Rate Subordinated Unsecured Notes due 2030 (the “Notes”). The Company intends to utilize the net proceeds for general corporate purposes.

“We are pleased to announce the successful completion of our subordinated debt offering under favorable terms. This debt offering will strengthen the Company’s already strong capital position, provide additional flexibility as we grow our franchise and it will enhance our ability to execute on our long-term business strategies,” said Larry J. Miller, Chairman, President and Chief Executive Officer of Codorus Valley.

The Notes are structured to qualify as Tier 2 capital for Codorus Valley for regulatory capital purposes. The Notes will initially bear a fixed interest rate of 4.50% until December 2025, after which time until maturity on December 9, 2030, the interest rate will reset quarterly to an annual floating rate equal to 90-day average SOFR (Secured Overnight Financing Rate) plus 404 basis points. The Notes are redeemable by the Company at its option, in whole or in part, on or after December 9, 2025. Any redemption will be at a redemption price equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest. The Notes are not subject to redemption at the option of the holders.

Boenning & Scattergood, Inc. served as the sole placement agent for the offering. Stevens & Lee, P.C. served as legal counsel to Codorus Valley and Barley Snyder served as legal counsel to the placement agent.

The Company

With $2.1 billion in assets, Codorus Valley is the largest independent financial services holding company headquartered in York, Pennsylvania. Codorus Valley primarily operates through its financial services subsidiary, PeoplesBank. PeoplesBank offers a full range of consumer, business, wealth management, and mortgage services at financial centers located in communities throughout South Central Pennsylvania and Central Maryland. Codorus Valley’s Common Stock is listed on the NASDAQ Global Market under the symbol CVLY.