GrandSouth Bancorporation the holding company for GrandSouth Bank ("Bank"), announced that on November 13, 2020 it completed a private placement of $18.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due November 2030. The unsecured notes initially bear interest at a fixed rate of 4.375% per annum, payable semi-annually in arrears on each May 15 and November 15 commencing May 15, 2021 until November 15, 2025. From November 15, 2025 through November 15, 2030 (or up to an earlier redemption date), the interest rate shall reset quarterly to an interest rate per annum equal to Three-Month Term SOFR (or the applicable successor or substitute base rate) plus 416 basis points, payable quarterly in arrears. The notes are redeemable, in whole or in part, on November 15, 2025, on any interest payment date thereafter, and at any time upon the occurrence of certain events. GrandSouth Bancorporation intends to use proceeds from the private placement for general corporate purposes, to include enhancing the Bank's capital ratios and supporting growth of the franchise, and potential future strategic opportunities.