Tucker Ellis represented STAR Financial Group in a private placement of $50 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2031 (the “Notes”) to certain qualified institutional buyers.

The Notes will initially bear interest at 3.25% per year, payable semi-annually in arrears. Beginning October 1, 2026 through the maturity date or earlier redemption, the interest rate will reset quarterly based on the then current Three-Month Term SOFR plus 257 basis points, payable quarterly in arrears. Also beginning on October 1, 2026 through maturity, the Notes may be redeemed in whole or in part, at the Company’s option. The Notes will mature on October 1, 2031.

The Notes are structured to qualify as Tier 2 capital instruments for regulatory capital purposes. The Company intends to utilize the proceeds from the sale of the Notes to repurchase outstanding shares of its common stock and to support the general operations of the Company and its wholly owned subsidiary, STAR Financial Bank. 

PNC FIG Advisory, part of PNC Capital Markets LLC, served as sole placement agent. 

The Tucker Ellis team consisted of Glenn Morrical and Kristen Baracy.

STAR Financial Group, headquartered in Fort Wayne, Indiana, is the holding company parent of STAR Financial Bank. STAR is committed to delivering quality financial expertise and distinctive banking solutions to exceed customer expectations. In addition, STAR Private Advisory offers private banking, investment and fiduciary services. STAR has grown to $2.8 billion in assets with locations across central and northeast Indiana. For more information, visit starfinancial.com.