AUBURN, Calif.--(BUSINESS WIRE)--Community 1st Bank (OTCBB: CFBN), today announced the redemption, at par value, of all shares of preferred stock sold in January of 2009 to the U.S. Department of the Treasury (the “Treasury”). Community 1st Bank (“the Bank”) originally issued 2,550 shares of Series A Fixed Rate Non-Cumulative Perpetual Preferred Stock and 128 shares of Series B Fixed Rate Non-Cumulative Perpetual Preferred Stock to the Treasury under the Troubled Asset Relief Program (“TARP”) Capital Purchase Program. The Bank paid $2.7 million to redeem all of the Series A and B preferred stock, including $13 thousand of accrued and unpaid dividends.
The funds used to redeem the Series A and B Preferred Stock came from the offering of 2,800 shares of Series C Fixed Rate Non-Cumulative Preferred Stock, 5 percent, sold to certain existing shareholders and clients of the Bank. The offering closed on December 18, 2012, raising $2.8 million in gross proceeds. Each share of the Series C Preferred Stock mandatorily converts into common stock on the third anniversary of issuance unless converted earlier by the shareholder. The conversion rate is $2.75 per share, subject to adjustment, resulting in the issuance of 1,018,181 shares of common stock upon conversion of all Series C Preferred Stock.
President and Chief Executive Officer, Robert C. Haydon commented, “We are pleased to announce the redemption at par of all Preferred Stock issued as part of TARP-CPP. The repayment to Treasury and exit from TARP-CPP signifies the Bank’s progress in elevating past the financial crisis and subsequent recovery to profitability and growth. We are appreciative of the support from our shareholders and clients as evidenced by the successful and timely raise of our Series C Preferred Shares.”
Community 1st Bank is headquartered in Auburn, California, with branches in Roseville and Auburn, California. Community 1st Bank offers a wide range of business and consumer deposit products including remote deposit capture, health savings accounts, online banking, and cash management services. The Bank also offers a full complement of loan products, including commercial, consumer, and real estate loans. For more information about the Bank, visit the Bank’s website at www.community1bank.com.
Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, competitive pressure in the banking industry, balance sheet management, net interest margin variations, the ability to control costs and expenses, changes in the interest rate environment and financial policies of the United States government and general economic conditions. The Bank disclaims any obligation to update any such factors.