Sword Financial Corporation

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Sub Debt Issuance – Sword Financial Corporation December 2018 Transaction Overview On December 27, 2018, Horicon, Wisconsin-based Sword Financial Corporation, the holding Sword Financial Corporation holding company for: company for Horicon Bank, completed the issuance of $10.0 million in 10-year fixed-to-floating rate subordinated notes. The subordinated debt is structured such that it qualifies as Tier 2 capital at the holding company. The notes will initially bear interest at 6.50% per annum through December 27, 2023, and thereafter pay an annual floating rate equal to three-month LIBOR plus 376 basis points. The Company intends to use the net proceeds for general corporate purposes, including to strengthen its capital ratios and improve its capital structure flexibility to support Horicon Bank’s Subordinated Debt Offering continued growth. $10.0 Million Performance Trust Capital Partners served as sole placement agent for Sword Financial 6.50% Fixed-to-Floating Corporation in connection with this issuance of subordinated debt. Notes Due December 2028 Sole Placement Agent Bank Financial Highlights (September 30, 2018) Branch Map Performance Trust Capital Partners Horicon ($000s) Bank For additional information, please Assets: $ 726,801 contact our deal team for this transaction: Loans: 630,545 Deposits: 647,697 Matt Shields Managing Director Tang. Equity: 71,796 (312) 521-1638 [email protected] TCE / TA: 9.89% Gary Svec NPAs (ex. TDR's): 0.66% Managing Director (312) 521-1675 LTM Pre-tax Net Income: $ 9,553 [email protected] LTM Pre-tax ROAA: 1.36% LTM Pre-tax ROAE: 13.34% © 2018 Performance Trust Capital Partners, LLC (which, along with its affiliates, is referred to as “Performance Trust"). All Rights Reserved. The information contained herein has been obtained from sources considered to be reliable, and it is subject to change without notice. Performance Trust does not guarantee its 1 accuracy, adequacy or completeness and is not responsible for any errors or omissions or for the results obtained from the use of such information. Under no circumstances is it an offer or solicitation to purchase or sell securities. From time to time, Performance Trust may have positions in, buy, or sell securities referred to in this material for and may perform, or solicit investment banking, business, or other services from, companies mentioned herein..

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