Intervest Bancshares Corporation Announces Successful Bid for TARP Securities
June 17 2013 - 2:30PM
Business Wire
Intervest Bancshares Corporation (NASDAQ-GS: IBCA), the holding
company for Intervest National Bank, announced today that it has
been notified that it successfully bid for the purchase of 6,250
shares of its Series A Fixed Rate Cumulative Perpetual Preferred
Stock (the “Preferred Stock”) held by the U.S. Department of the
Treasury (“Treasury”). The Company issued 25,000 shares of
Preferred Stock to the Treasury in December 2008 in connection with
the Company’s participation in the Capital Purchase Program (the
“CPP”) under the Treasury’s Troubled Asset Relief Program (“TARP”),
together with a ten-year warrant (the “Warrant”) to purchase
691,882 shares of the Company’s common stock at an exercise price
of $5.42 per share.
On June 6, 2013, the Treasury announced its intent to sell its
investment in the Company’s Preferred Stock, along with similar
investments the Treasury had made in five other financial
institutions, primarily to qualified institutional buyers and
certain institutional accredited investors. The Company sought and
obtained regulatory approvals allowing it to participate in the
auction. Using a modified Dutch auction methodology that
established a market price by allowing investors to submit bids at
specified increments during the period from June 10, 2013 through
June 13, 2013, the Treasury auctioned all of the Company’s 25,000
shares of Preferred Stock. The remaining 18,750 shares of Preferred
Stock are expected to be purchased by unrelated third parties. The
closing price of the auctioned shares was $970.00 per share.
The Company purchased the Preferred Stock at a discount of 3.0%
from the liquidation preference of the Preferred Stock, for a total
purchase price of $6,062,500, plus an additional $1,227,500 in
accrued and unpaid preferred dividends through the transaction’s
expected settlement date of June 24, 2013. The Treasury continues
to hold the Warrant. Going forward, the Company will benefit from
the elimination of the annual Preferred Stock dividend of $312,500
with respect to the 6,250 shares to be purchased.
Chairman and CEO Lowell Dansker commented “We are quite pleased
to have been able to participate in Treasury’s auction and to
retire 6,250 shares of our outstanding Preferred Stock. Our
original participation in the CPP strengthened our capital base and
allowed us to take a variety of steps that have improved our
financial condition. As a result, our capital ratios following this
partial redemption will continue to be well in excess of applicable
standards and we will be positioned for future growth.”
Intervest Bancshares Corporation
Intervest Bancshares Corporation is a bank holding company. Its
principal operating subsidiary is Intervest National Bank, 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. Intervest Bancshares Corporation’s Class A
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 the Company is currently 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 the Company’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.
LOWELL DANSKER, CHAIRMANIntervest Bancshares CorporationOne
Rockefeller Plaza (Suite 400)New York, New York
10020-2002212-218-2800 Fax- 212-218-2808
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