North Shore Bank Closes $20M Subordinated Note Offering

Funds will refinance debt and support growth of commercial lending, mortgage, and trust divisions.

Feb. 25, 2026 at 3:54pm

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North Shore Financial Corporation, the holding company of North Shore Bank of Commerce, a family-owned community bank serving the Midwest for over 110 years, has successfully closed a $20 million subordinated debt offering with a syndicate of community bank partners. The proceeds will be used to refinance existing debt and fund general corporate purposes as the bank looks to expand its commercial lending, mortgage, and trust services.

Why it matters

This capital raise represents an important milestone for North Shore Bank, strengthening its balance sheet and providing the strategic flexibility to pursue organic growth opportunities within its core business lines. As a long-standing, family-owned community bank, North Shore's ability to secure this financing demonstrates its consistent financial performance and the confidence of its institutional partners.

The details

The subordinated debt offering was led by Brean Capital, LLC, who served as the company's exclusive financial advisor and sole placement agent. The additional financing will allow North Shore Bank to further expand its growing commercial lending portfolio as well as its complementary mortgage and trust divisions, building on its over 110-year history of serving the Midwest region.

  • North Shore Bank has been operating in the Duluth area for over 100 years.
  • The subordinated debt offering was closed on February 25, 2026.

The players

North Shore Financial Corporation

The holding company of North Shore Bank of Commerce, a family-owned community bank serving the Midwest region for over 110 years.

North Shore Bank of Commerce

A locally-owned and managed, independent, community bank that has been operating in the Duluth area for over 100 years, offering a full array of personal and business banking products, mortgage services, insurance services, and trust and investment services.

Fred Lewis

President of North Shore Financial Corporation.

Tim Johnson

CFO of North Shore Bank of Commerce.

Brean Capital, LLC

The company's exclusive financial advisor and sole placement agent for the subordinated debt offering.

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What they’re saying

“This successful transaction strengthens our capital foundation and positions us to continue serving our community's evolving financial needs.”

— Fred Lewis, President of North Shore Financial Corporation

“We appreciate the continued support of our new and existing institutional partners who recognize our consistent historical performance. This capital will further strengthen our balance sheet and provide ample capacity to fund future growth opportunities.”

— Tim Johnson, CFO of North Shore Bank of Commerce

What’s next

The additional financing provides the strategic flexibility for North Shore Bank to pursue organic growth through further expanding its commercial lending portfolio, mortgage, and trust divisions.

The takeaway

As a long-standing, family-owned community bank, North Shore Bank's ability to secure a $20 million subordinated debt offering demonstrates its consistent financial performance and the confidence of its institutional partners, positioning the bank to continue serving the evolving financial needs of the Midwest region.