SOUTH HILL, Va., May 8, 2012 /PRNewswire/ -- Citizens Community Bank (OTC: CZYB) announced today that, pursuant to the provisions of the Jumpstart Business Startups Act (the "JOBS Act"), the Board of Directors of the Bank voted on May 4, 2012, to deregister the Company's common stock under the Securities Exchange Act of 1934 (the "Exchange Act"). The JOBS Act, which was signed into law on April 5, 2012, raises the threshold for requiring banks and bank holding companies to register with the Securities and Exchange Commission under the Exchange Act to 2000 record holders, and also increases the threshold under which banks and bank holding companies are permitted to deregister from the Exchange Act from 300 record shareholders to 1,200 record shareholders. The Bank currently has 920 shareholders of record, and therefore qualifies for deregistration.
Mr. Thomas C. Manson, President and Chief Executive Officer, stated that: "Deregistering from the Exchange Act will not affect trading in our common stock as we will remain quoted on the OTC Bulletin Board. However, by deregistering under the Exchange Act, we will realize modest hard dollar cost-savings in reduced legal and audit expenses, filing fees and other, related costs of compliance with the Exchange Act. In addition to the hard dollar cost savings, deregistering our shares will also enable senior management to focus more on the day-to-day management of the bank, as opposed to the considerable time necessary to manage compliance with our reporting requirements. Going forward, you will continue to receive a proxy statement, annual report, and periodic communications. Both management and the Board of Directors expect this transition to in the best interest for our shareholders."
Under the Exchange Act, the deregistration will not be effective for ninety (90) days after the Bank's filing of its Form 15. The Bank expects its filing requirements with the Board of Governors of the Federal Reserve System to end on or about August 7, 2012. The Bank's quarterly and annual reports, proxy statements and current reports will no longer be filed with the Board of Governors of the Federal Reserve System, although the Bank will continue to provide quarterly and annual information and proxy statements to its shareholders. The Bank will also post this information on its website.
Citizens Community Bank is a Virginia state chartered bank headquartered in South Hill, Va. Opened in December 1999, it operates four branches, three in south central Virginia and one in northern 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. The Bank's actual results, events and developments may differ materially from those contemplated by any forward-looking statement.
SOURCE Citizens Community Bank