JOHNSTOWN, Pa., Jan. 28, 2016 /PRNewswire/ -- AmeriServ
Financial, Inc. (NASDAQ: ASRV) announced today that it has redeemed
all 21,000 outstanding preferred stock shares of the Company's
Senior Non-Cumulative Perpetual Preferred Stock, Series E ("Series
E Preferred Stock"), that it had issued to the U.S. Department of
Treasury ("Treasury") pursuant to the Treasury's Small Business
Lending Fund ("SBLF"). The shares were redeemed at
$1,000 per share, plus accrued but
unpaid dividends, for a total aggregated redemption price of
approximately $21 million. The
redemption of the Series E Preferred Stock terminates the Company's
participation in the SBLF program in full and had been approved by
the Company's primary federal regulator. The redemption was
funded from the previously disclosed issuance of $7.6 million of subordinated debt and
$13.4 million of internal Company
resources. Following the redemption, the Company continues to
have capital in excess of minimum regulatory requirements and at
levels that qualify as "well capitalized" under applicable
regulatory guidelines.
"The Company is pleased that it was able to redeem all of its
issued and outstanding SBLF preferred stock prior to the upcoming
dividend rate increase from 1% to 9% that was scheduled for
February 2016," stated Jeffrey A. Stopko, President and Chief Executive
Officer. "With the successful completion of this important
strategic initiative and our solid capital position, we are well
positioned to continue to pursue strategies that can improve
shareholder value."
AmeriServ Financial, Inc. is the parent of AmeriServ Financial
Bank and AmeriServ Trust and Financial Services Company in
Johnstown, PA. The Company's
subsidiaries provide full-service banking and trust and wealth
management services through seventeen community offices in
southwestern Pennsylvania. At December
31, 2015, AmeriServ had total assets of $1.15 billion, shareholders' equity of
$119 million, a book value of
$5.19 per common share and a tangible
book value of $4.56 per common
share.
Forward-Looking Statements
This news release contains forward-looking statements as defined in
the Securities Exchange Act of 1934 and is subject to the safe
harbors created therein. The forward-looking statements contained
herein include, but are not limited to, information regarding the
AmeriServ's capital levels and future payment obligations. These
forward-looking statements involve risks and uncertainties that
could cause AmeriServ's results to differ materially from
management's current expectations. Such risks and uncertainties are
detailed in AmeriServ's filings with the Securities and Exchange
Commission, including our Annual Report on Form 10-K for the year
ended December 31, 2014.
Forward-looking statements are based on the beliefs and assumptions
of AmeriServ's management and on currently available
information. The statements in this press release are made as
of the date of this press release, even if subsequently made
available by AmeriServ on its website or otherwise. AmeriServ
undertakes no responsibility to publicly update or revise any
forward-looking statement.
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SOURCE AmeriServ Financial, Inc.