Jeff Davis Bancshares, Inc. (JDVB) announced the closing of a $17.5 million private placement of fixed-to-floating rate subordinated notes. The company plans to use the additional capital for general corporate purposes including organic growth initiatives at JD Bank as well as potential M&A opportunities. The notes have a maturity date of January 15, 2027 and carry a fixed rate of interest of 6.75% for the first five years. Thereafter, the notes will pay interest at LIBOR plus 469 basis points. The notes include a right of prepayment, without penalty, on or after January 15, 2022. The subordinated notes have been structured to qualify as Tier 2 capital for regulatory purposes.