FB Financial executives recently raised $100 million in 10-year debt to give them a little more padding.
The new unsecured notes qualify as Tier 2 capital for FirstBank and will pay 4.5 percent interest for their first five years. After that, they will adjust to a floating rate of a short-term benchmark plus 439 basis points. Downtown-based FirstBank has the option to redeem the debt starting in the fall of 2025.
“We are pleased with the additional capital cushion that this offering provides us,” President and CEO Chris Holmes said in a statement. “The favorable terms reflect the strength of FirstBank’s balance sheet and operating results. With the closing of the Franklin transaction and this capital on the balance sheet, we feel that we are well positioned for the future.”
Piper Sandler & Co. and U.S. Bancorp Investments led the offering, in which Stephens also took part. Attorneys with Waller Lansden Dortch & Davis advised FirstBank while Nelson Mullins Riley & Scarborough lawyers worked with the placement agents.
CHS entity to pay fed regulators $2.3M
A Community Health Systems entity has agreed to pay federal regulators $2.3 million to settle allegations that the Franklin-based hospital company violated the Health Insurance Portability and Accountability Act when a cyberhacking group infiltrated its systems and stole more than 6 million patients’ information in 2014.
Along with paying the fine, CHSPSC — which houses a number of administrative functions (including information technology) for CHS — also has agreed to a corrective action plan that includes two years of monitoring. The Office for Civil Rights at the U.S. Department of Health and Human Services said its investigation of CHSPSC found “longstanding, systemic noncompliance with the HIPAA Security Rule” that left patient information unprotected even after the Federal Bureau of Investigation warned the company about the hacking threat.
“The health care industry is a known target for hackers and cyberthieves. The failure to implement the security protections required by the HIPAA Rules, especially after being notified by the FBI of a potential breach, is inexcusable,” OCR Director Roger Severino said in a statement.
CHS officials said Thursday they have long disputed the OCR's allegations and have cooperated with the FBI since 2014.
"We settled these allegations without any admission of fault after a six-year investigation in which we provided OCR ample evidence that its allegations were inaccurate," the company said. "The Company responded promptly when it learned of the attack and worked closely with the FBI and consistent with the FBI's recommendations. Further, the Company had robust risk controls in place at the time of the attack, including those required by the HIPAA Rules. Regardless, we are pleased with the outcome and glad to finally put this to an end."
CHS early last year agreed to settle a class action over the breach.