Independent Bank Corporation Announces Redemption Of Certain Trust Preferred Securities
IONIA, Mich., Sept. 11, 2013 /PRNewswire/ -- Independent Bank Corporation (NASDAQ: IBCP) ("Independent" or the "Company") today announced that IBC Capital Finance II will redeem all of its issued and outstanding 8.25% trust preferred securities (NASDAQ: IBCPO) on October 11, 2013. The aggregate principal amount of the outstanding trust preferred securities is $9.2 million.
The trust preferred securities are currently callable at the option of the Company. The redemption will be funded with net proceeds from its recently announced public offering of common stock. The redemption price is 100% of the liquidation amount of $25 per trust preferred security, together with accrued and unpaid distributions to the redemption date. The redemption is expected to result in an annual reduction of interest expense for the Company of $0.8 million.
Beginning on the redemption date, the trust preferred securities will no longer be considered outstanding and distributions will no longer accrue on such securities. The complete terms and conditions of redemption will be set forth in the notice from the trustee, U.S. Bank National Association, to the holders of the trust preferred securities.
About Independent Bank Corporation
Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $2.1 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation currently operates a 71-branch network across Michigan's Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, investments and title services. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves.
For more information, please visit our Web site at: www.IndependentBank.com.
Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "expect," "believe," "intend," "estimate," "project," "may" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are predicated on management's beliefs and assumptions based on information known to Independent Bank Corporation's management as of the date of this news release and do not purport to speak as of any other date. Forward-looking statements include descriptions of plans and objectives of Independent Bank Corporation's management for the expected use of the proceeds received from the offering described herein, future or past operations, products or services, and forecasts of the Company's revenue, earnings or other measures of economic performance. Such statements reflect the view of Independent Bank Corporation's management as of this date with respect to future events and are not guarantees of future performance, involve assumptions and are subject to substantial risks and uncertainties, such as the changes in Independent Bank Corporation's plans, objectives, expectations and intentions. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences include the ability of Independent Bank Corporation to meet the objectives of its capital plan, the ability of Independent Bank to remain well-capitalized under federal regulatory standards, the pace of economic recovery within Michigan and beyond, changes in interest rates, changes in the accounting treatment of any particular item, the results of regulatory examinations, changes in industries where the Company has a concentration of loans, changes in the level of fee income, changes in general economic conditions and related credit and market conditions, and the impact of regulatory responses to any of the foregoing. Forward-looking statements speak only as of the date they are made. Independent Bank Corporation does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. For any forward-looking statements made in this news release or in any documents, Independent Bank Corporation claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
SOURCE Independent Bank Corporation