LSB Corporation Repays Treasury's $15 Million Preferred Stock Investment Under the Capital Purchase Program
18 Noviembre 2009 - 10:05AM
Marketwired
LSB Corporation (NASDAQ: LSBX) (the "Company") today announced that
it repurchased, effective today, the U.S. Treasury Department's
$15.0 million preferred stock investment under the Treasury's
Capital Purchase Program that was part of the broader TARP
initiative.
"Given LSB Corporation's strong capital position, federal
regulators granted the Company approval to repurchase the U.S.
Treasury's preferred stock investment," said Gerald T. Mulligan,
President and CEO of LSB Corporation and River Bank. "Our
participation in the Capital Purchase Program, which at the time
was available only to healthy institutions, added a level of
confidence to expand our lending capabilities during the economic
challenges of the past year. However, due to changes in the program
imposed by Congress and ongoing negative public perception, we
believe that it is in the best interests of our shareholders and
customers to now repay the Treasury's investment and exit the
program as soon as possible."
The Company and the Bank exceeded the federal regulatory
standards to be considered "well-capitalized" prior to
participation in the Capital Purchase Program and will continue to
be "well-capitalized" after repayment to the Treasury.
LSB Corporation repurchased all 15,000 shares of Fixed Rate
Cumulative Perpetual Preferred Stock, Series B, with a liquidation
value of $1,000 per share, issued on December 12, 2008. As part of
this program, the Treasury was also issued a warrant to purchase
209,497 shares of LSB Corporation common stock with an initial
exercise price of $10.74 per share. Now that the Company has
redeemed the preferred stock investment, it has the right to
repurchase the warrant at a price to be determined through
negotiations with the U.S. Treasury. The Company intends to
negotiate for the repurchase of the warrant. However, the
repurchase price for the warrant will be subject to those
negotiations and there can be no assurance that it will be
repurchased. The Company has no immediate plans to raise additional
capital at this time.
Press releases and SEC filings can be viewed on the internet at
our website www.RiverBk.com/press-main.html or
www.RiverBk.com/stockholder-info.html, respectively.
LSB Corporation is a Massachusetts corporation that conducts all
of its operations through its sole subsidiary, River Bank (the
"Bank"). The Bank offers a range of commercial and consumer loan
and deposit products and is headquartered at 30 Massachusetts
Avenue, North Andover, Massachusetts, approximately 25 miles north
of Boston. River Bank operates 5 full-service banking offices in
Massachusetts in Andover, Lawrence, Methuen (2) and North Andover
and 2 full-service banking offices in New Hampshire in Derry and
Salem. As of September 30, 2009, the Company had total assets of
$807 million and total deposits of $471 million.
The reader is cautioned that this press release may contain
certain statements that are "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements are expressions of management's
expectations as of the date of this press release regarding future
events or trends and which do not relate to historical matters.
Such expectations may or may not be realized, depending on a number
of variable factors, including but not limited to, changes in
interest rates, changes in real estate valuations, general economic
conditions (either nationally or regionally), regulatory
considerations and competition. For more information about these
factors, please see our recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q on file with the SEC, including the
sections entitled "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations". As a
result of such risk factors and uncertainties, the Company's actual
results may differ materially from such forward-looking statements.
The Company does not undertake and specifically disclaims any
obligation to publicly release updates or revisions to any such
forward-looking statements as a result of new information, future
events or otherwise.
CONTACT: Gerald T. Mulligan President & CEO (978)
725-7555
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