Canadian Banc Corp.: 42% Increase to September Monthly Dividend for Class A Share

Canadian Banc Corp. ("the Company") is pleased to announce a change in the distribution policy to the Class A shares that will result in an immediate increase of over 42% to the monthly dividend. The new distribution policy will be targeted to pay at an annual rate of 10%. The Company believes that the new policy will better reflect actual returns on the Company's underlying portfolio.

In making this change, the Manager and the Board have considered the following in their analysis:


1.  The net asset value per unit ($20.99 at September 13, 2013) and the
    range over the previous years. 
2.  The amount of dividend income and additional income earned from the
    covered call writing program. 
3.  The resumption of dividend increases in the 6 Chartered Banks held in
    the portfolio since 2011 that have resulted in a total increase in the
    average dividend rate for these Banks of 26%. 
4.  The historically unprecedented low rate environment which has caused the
    distribution rate on the Class A shares to remain at the minimum level
    over the last 4 years under the previous floating rate distribution
    policy. 
5.  The net asset value attributable to the Class A shares which is
    approximately 17% higher than the current trading price.

Under the new distribution policy, the monthly dividend payable on the Class A shares will be determined by applying a 10% annualized rate on the volume weighted average market price of the Class A shares over the last 3 trading days of the preceding month. As a result, Class A shareholders of record on September 30, 2013 will receive a dividend of $0.07600 per share based on the average volume weighted trading market price of $9.12 over the last 3 trading days in August, payable on October 10, 2013. Effectively, the actual amount of monthly distributions paid will vary with the market price, but the current yield will remain stable at 10% under this new distribution policy.

There will be no changes to the Preferred Share dividend policy or the Class A dividend threshold policy. Preferred shares will continue to receive prime plus 0.75% with a minimum rate of 5%.


Distribution Details:                                                       
Class A Share (BK)            $0.07600                                      
Preferred Share (BK.PR.A)     $0.04167                                      
Ex-Dividend Date:             September 26, 2013                            
Record Date:                  September 30, 2013                            
Payable Date:                 October 10, 2013

Contacts: Canadian Banc Corp. Investor Relations 416-304-4443 or Toll Free: 1-877-4-Quadra (1-877-478-2372) www.primerateplus.com

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