Plumas Bancorp Exits TARP With Repurchase of Warrant From U.S. Treasury
May 23 2013 - 12:49PM
Marketwired
Plumas Bancorp (NASDAQ: PLBC), a bank holding company and the
parent company of Plumas Bank, announced today that on May 22, 2013
it completed the repurchase of the warrant issued to the United
States Department of the Treasury (the "Treasury") in 2009 as part
of the Treasury's Troubled Asset Relief Program's (TARP) Capital
Purchase Program. The warrant provided the Treasury the right to
purchase 237,712 shares of the Plumas Bancorp's common stock at a
price of $7.54 per share. Plumas Bancorp (the "Company") and the
Treasury agreed upon a repurchase price of $234,500 for the
warrant. As a result of the Company's repurchase of the warrant,
the Treasury no longer has any equity interest in the Company.
In April 2013, the Company repurchased, at auction, 7,000 of the
11,949 shares of preferred stock originally sold to the Treasury in
2009. The remaining 4,949 shares were sold by the Treasury to
investment firms unrelated to the Company. The Company paid $7.6
million for the 7,000 shares, resulting in a discount of
approximately 7% on the face value of the preferred shares, plus
related outstanding dividends.
Andrew J. Ryback, president and chief executive officer of
Plumas Bancorp and Plumas Bank, commented, "We are pleased that we
were able to repurchase our warrant at a fair price. The repurchase
of our warrant not only protects our shareholders against dilution
but also brings our relationship with the Treasury to a close. The
conclusion of our participation in the TARP program will allow us
to focus on the critical tasks of strengthening our customer
relationships and maximizing long-term shareholder value."
Founded in 1980, Plumas Bank is a locally owned and managed
full-service community bank based in Northeastern California. The
Bank operates eleven branches located in the counties of Plumas,
Lassen, Placer, Nevada, Modoc and Shasta. Plumas Bank offers a wide
range of financial and investment services to consumers and
businesses and has received nationwide Preferred Lender status with
the United States Small Business Administration. For more
information on Plumas Bancorp and Plumas Bank, please visit our
website at www.plumasbank.com.
This news release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Exchange Act of 1934, as amended and Plumas
Bancorp intends for such forward-looking statements to be covered
by the safe harbor provisions for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
Future events are difficult to predict, and the expectations
described above are necessarily subject to risk and uncertainty
that may cause actual results to differ materially and
adversely.
Forward-looking statements can be identified by the fact that
they do not relate strictly to historical or current facts. They
often include the words "believe," "expect," "anticipate,"
"intend," "plan," "estimate," or words of similar meaning, or
future or conditional verbs such as "will," "would," "should,"
"could," or "may." These forward-looking statements are not
guarantees of future performance, nor should they be relied upon as
representing management's views as of any subsequent date.
Forward-looking statements involve significant risks and
uncertainties and actual results may differ materially from those
presented, either expressed or implied, in this news release.
Factors that might cause such differences include, but are not
limited to: the Company's ability to successfully execute its
business plans and achieve its objectives; changes in general
economic and financial market conditions, either nationally or
locally in areas in which the Company conducts its operations;
changes in interest rates; continuing consolidation in the
financial services industry; new litigation or changes in existing
litigation; increased competitive challenges and expanding product
and pricing pressures among financial institutions; legislation or
regulatory changes which adversely affect the Company's operations
or business; loss of key personnel; and changes in accounting
policies or procedures as may be required by the Financial
Accounting Standards Board or other regulatory agencies.
In addition, discussions about risks and uncertainties are set
forth from time to time in the Company's publicly available
Securities and Exchange Commission filings. The Company undertakes
no obligation to publicly revise these forward-looking statements
to reflect subsequent events or circumstances.
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