Intervest Bancshares Corporation Announces Redemption of Remaining Shares of Preferred Stock
July 17 2013 - 8:00AM
Business Wire
Intervest Bancshares Corporation (NASDAQ-GS:
IBCA), the holding company for Intervest National Bank, announced
today that it intends to redeem the remaining 18,750 shares of its
outstanding Series A Fixed Rate Cumulative Perpetual Preferred
Stock (the “Preferred Stock”) that were issued as part of the
Capital Purchase Program (“CPP”), established under the Troubled
Asset Relief Program (“TARP”). The effective date of the planned
redemption is August 15, 2013. The shares are being redeemed from
third parties that purchased the Preferred Stock from the U.S.
Treasury (“Treasury”) in a modified Dutch auction in June of this
year.
The purchase price for shares of the Company’s
Preferred Stock in the redemption will be the stated liquidation
value of $1,000 per share, plus any accumulated and unpaid
dividends that have been earned thereon up to, but not including
the date of redemption. The Company anticipates the total cost of
redeeming the remaining shares of Preferred Stock will be
approximately $22,590,000. The Company has received all necessary
regulatory approvals to complete the redemption.
The Company previously repurchased the other
6,250 shares of its Preferred Stock from the Treasury in the
auction at a purchase price of $970 per share, plus accumulated and
unpaid dividends, for an aggregate purchase price of $7,290,000.
That transaction closed on June 24, 2013. Following the planned
redemption of the remaining shares of Preferred Stock on August 15,
2013, no shares of the Company’s Preferred Stock will remain
outstanding, and the Company will pay no further dividends on the
Preferred Stock. The common stock purchase warrant issued to the
Treasury in connection with the Company’s participation in the CPP,
remains outstanding.
“We are pleased to have the opportunity to
complete this redemption,” said Lowell Dansker, Chairman and Chief
Executive Officer of the Company. “Completion of the redemption is
consistent with our plans to exit the TARP program. Our capital
ratios following the redemption will continue to exceed all
applicable requirements of our regulators and the standards for
well capitalized banks. We are pleased that actions we have taken
to respond to regulatory issues and to strengthen our balance sheet
are enabling us to exit the TARP program.”
Intervest Bancshares Corporation (IBC) is a
bank holding company. Its operating subsidiary is Intervest
National Bank (INB), a nationally chartered commercial bank that
has its headquarters and full-service banking office at One
Rockefeller Plaza, in New York City, and a total of six
full-service banking offices in Clearwater and Gulfport, Florida.
IBC's Common Stock is listed on the NASDAQ Global Select Market:
Trading Symbol IBCA. This release may contain forward-looking
information. Words such as "may," "will," "could," "should,"
"would," "believe," "anticipate," "estimate," "expect," "intend,"
"plan," "project," "assume," "indicate," "continue," "target,"
"goal," and similar words or expressions of the future are intended
to identify forward-looking statements. Except for historical
information, the matters discussed herein are subject to certain
risks and uncertainties that may adversely affect our business,
financial condition and results of operations. The following
factors, among others, could cause actual results to differ
materially from those set forth in forward looking statements: the
regulatory agreement to which IBC is subject and any operating
restrictions arising therefrom including availability of regulatory
approvals or waivers; changes in economic conditions and real
estate values both nationally and in our market areas; changes in
our borrowing facilities, volume of loan originations and deposit
flows; changes in the levels of our non-interest income and
provisions for loan and real estate losses; changes in the
composition and credit quality of our loan portfolio; legislative
or regulatory changes, including increased expenses arising
therefrom; changes in interest rates which may reduce our net
interest margin and net interest income; increases in competition;
technological changes which we may not be able to implement;
changes in accounting or regulatory principles, policies or
guidelines; changes in tax laws and our ability to utilize our
deferred tax asset, including NOL and AMT carryforwards; and our
ability to attract and retain key members of management. Reference
is made to IBC's filings with the SEC for further discussion of
risks and uncertainties regarding our business. We assume no
obligation to update any forward looking statements. Historical
results are not necessarily indicative of our future prospects.
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