The parent company of Stamford-based Patriot Bank has raised $10 million in a private placement offering, a portion of which will be used to acquire Hana Small Business Lending.

The $870 million asset company announced the offering in a regulatory filing yesterday, about five months after announcing its plan to purchase Hana Small Business Lending, a U.S. small business loan origination and servicing platform.

The private placement came with a fixed-to-floating rate subordinated notes due 2028, initially bearing interest at 6.25 percent until about halfway through the year 2023. The interest rate will then reset quarterly to an interest rate equivalent to the three-month LIBOR plus 332.5 basis points.

“We are pleased to announce the completion of our $10 million subordinated debt offering to support our strategic growth plans and further strengthening of Patriot [Bank],” Patriot’s Chairman and CEO Michael Carrazza said in a statement.

The company purchased Hana Small Business Lending, a subsidiary of Hana Financial, with the intention to become a nationwide leader in the SBA 7(a) lending arena. SBA 7(a) loans are the most common type of SBA loan. These loans go up to $5 million and can be used for working capital, to refinance debt or to buy a business, real estate or equipment.

The Hana deal included the purchase of approximately $120 million of SBA 7(a) loans and servicing rights relating to a pool of $370 million in loans. The deal also includes the assumption of two loan securitization vehicles, currently rated AA+ and A- by Standard and Poor’s.

Patriot became an approved SBA lender last year and the acquisition of Hana will boost this product line – Hana has originated nearly $1 billion in SBA 7(a) loans since its inception. Hana SBL was the third most active non-bank SBA lender in the nation in 2017 and one of the top 35 most active of all SBA lenders among over 3,000 SBA lenders nationwide.

Patriot Bank has been active as of late. Before announcing the acquisition of Hana, Patriot Bank completed the acquisition of Prime Bank in October 2017.