SOUTH HILL, Va., Aug. 1, 2011 /PRNewswire/ -- Citizens Community Bank (OTC Bulletin Board: CZYB) announced today that on July 28, 2011, it received an investment of $4.0 million in the Bank’s preferred stock from the United States Department of the Treasury (the “Treasury”) under the Small Business Lending Fund (the “SBLF”). The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified community banks at favorable rates.
Simultaneously with the receipt of the SBLF funds, the Bank redeemed the full balance of $3,150,000 of shares of its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A and Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B issued to the Treasury under the TARP Capital Purchase Program (the “TARP Preferred Shares”)
This investment provides the Bank with approximately $817,000 of additional Tier 1 capital after the redemption of the TARP Preferred Shares. Chief Executive Officer, Thomas Manson, commented, “We are pleased to have qualified for the Small Business Lending Fund program and completed this capital infusion from the Treasury. The capital which we receive under the program will allow us to continue to serve small business clients in the south central Virginia and northern North Carolina regions through our commercial lending and owner occupied real estate lending programs.”
Mr. Manson continued, “Because the Bank has grown its qualifying small business loans as of June 30, 2011 balances by 6.6 % relative to the base period, the Bank expects to see dividend savings in future periods. We fully expect to grow our qualifying loans by the 10% margin required to achieve the most favorable 1% dividend rate in the next few quarters.”
Citizens Community Bank is a Virginia state chartered bank headquartered in South Hill, Virginia. Opened in December 1999, it operates four branches, with 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