Third Century Bancorp Announces Completion of Subordinated Note Offering

(OTCPINK: TDCB) - Third Century Bancorp, Inc. (the "Company"), the parent holding company of Mutual Savings Bank (the "Bank"), today announced the completion of a private placement of $10.0 million in aggregate principal amount of its 3.75% Fixed-to-Floating Rate Subordinated Notes due February 15, 2032 (the "Notes") to various qualified institutional buyers and institutional accredited investors (the "Offering"). The price for the Notes was 100% of the principal amount of the Notes. The Notes are intended to qualify as Tier 2 capital for regulatory purposes. The Company intends to use the net proceeds from the Offering for general corporate purposes, including but not limited to, contribution of funds to the Bank, potential future strategic opportunities and the purchase of shares of its common stock from stockholders.

Interest on the Notes will accrue at a rate equal to (i) 3.75% per annum from the original issue date to, but excluding, February 15, 2027, payable semi-annually in arrears, and (ii) a floating rate per annum equal to a benchmark rate, which is expected to be the Three-Month Term SOFR (as defined in the Notes), plus a spread of 224 basis points from and including February 15, 2027 until maturity, payable quarterly in arrears. Beginning on February 15, 2027 through maturity, the Notes may be redeemed, at the Company's option, on any scheduled interest payment date. Any redemption will be at a redemption price equal to 100% of the principal amount of Notes being redeemed, plus accrued and unpaid interest.

David A. Coffey, President and CEO of Third Century Bancorp stated, "We are excited to announce the completion of our recent subordinated debt offering. This offering was completed in a very timely fashion on favorable terms. A portion of the capital will downstream to the Bank and will support our continued growth. In addition, this will support our efforts of continuing our repurchase of common stock that will further enhance shareholder value."

Boenning & Scattergood, Inc. served as financial advisor to the Company and acted as the sole placement agent for the Offering and was represented by SmithAdmundsen LLC as legal counsel. Luse Gorman, PC served as the Company's legal counsel in the Offering.

Third Century Bancorp operates as the bank holding company for Mutual Savings Bank. Founded in 1890, Mutual Savings Bank is a full-service financial institution based in Johnson County, Indiana. In addition to its main office at 80 East Jefferson Street, Franklin, Indiana, the Bank operates branches in Franklin at 1124 North Main Street, Trafalgar and Greenwood, Indiana.

This press release contains certain forward-looking statements that are based on assumptions and may describe future plans, strategies and expectations of the Company. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimate" and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Certain factors that could cause actual results to differ materially from expected results include the COVID-19 pandemic, changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the business of the Company and the Bank, and changes in the securities markets. Except as required by law, the Company does not undertake any obligation to update any forward-looking statements to reflect changes in belief, expectations or events.