SOUTH HILL, Va., June 25, 2015 /PRNewswire/ -- Citizens Community Bank (OTCQB: CZYB) today announced that it has redeemed $3.0 million (3,000 shares) of the outstanding Series C Preferred Stock ("Series C Preferred Stock") that had been issued to the Secretary of the Treasury ("Treasury") in July 2011 through the bank's participation in the Small Business Lending Fund ("SBLF"). On June 23, 2015, CCB redeemed $3.0 million (3,000 shares) or 75% of the original $4.0 million investment. The shares were redeemed at their liquidation value of $1,000 per share plus accrued dividends and fees through June 23, 2015, for a total redemption price of $3,007,833.33. With this redemption, $1.0 million of the original Series C Preferred Stock remains outstanding.
After the partial redemption, Citizens Community Bank will continue to have capital in excess of minimum regulatory requirements and at levels that qualify as "well capitalized" under applicable regulatory guidelines.
President and CEO James R. Black stated, "Our participation in the SBLF program has been beneficial for our shareholders and the communities we serve. This partial redemption is an integral step in our long-term capital planning process and reduces the future cost of capital. We are pleased that our financial strength allowed us to reduce $3.0 million of SBLF preferred stock."
Citizens Community Bank is a Virginia state chartered bank headquartered in South Hill, Virginia. Opened in December 1999, it operates five branches, three in south central Virginia, two in northern North Carolina as well as a loan production office in North Raleigh, North Carolina. For more information and additional financial data, please visit www.ccbsite.com.
This press release contains "forward-looking statements" that concern future events which are subject to risks and uncertainties. Any such statements are based on certain assumptions and analyses by the Bank and other factors it believes are appropriate in the circumstances and at the time at which such statements are made. The Bank's actual results, events and developments may differ materially from those contemplated by any forward-looking statement. The Bank has no responsibility to update such forward-looking statements.
SOURCE Citizens Community Bank