Bank Holding Company Lines of Credit

Bank Holding Company Lines of Credit

BANK HOLDING COMPANY FINANCING

ACBB offers term loans and lines of credit to bank holding companies. Borrowed funds can be down-streamed to the bank subsidiary and qualify as Tier 1 capital, bolstering the bank’s capital ratios and supporting the growth of the bank. Bank holding companies with $1 billion or less in assets may take advantage of other provisions within the Small Bank Holding Company Act.

Extending this product offering to intermediate longer term facilities can be an important strategic alternative versus raising capital, without the negative effects of dilution to your shareholders. This structure is also an alternative to Subordinated Debt that typically carries significantly higher borrowing costs and less flexibility (e.g. no calls or prepayment for five years).

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