SPARTANBURG, S.C., Feb. 23, 2016 (GLOBE NEWSWIRE) -- Carolina Alliance Bank (OTCQX:CRLN) today announced that it had redeemed all of the 5,000 shares of the Company’s Senior Non-Cumulative Perpetual Preferred Stock, Series A, liquidation amount $1,000 per share (the “Series A Preferred Stock”), issued to the United States Treasury in August 2011 pursuant to the Small Business Lending Fund (“SBLF”) program. The aggregate redemption price of the Series A Preferred Stock was approximately $5.0 million, including accrued but unpaid dividends.
The Series A Preferred Stock was redeemed from the bank’s existing available funds. Following the redemption, the bank does not have any shares of its Series A Preferred Stock outstanding. As a result, the redemption terminates the Company’s participation in the SBLF program.
John S. Poole, Chief Executive Officer of the bank said, “The SBLF program provided a great opportunity to enhance our already strong capital position and help us continue to meet the credit needs of businesses in the communities we serve. Throughout our participation in the program, we provided financing to our small business customers, and for the entire term we earned the lowest dividend rate available under the SBLF, which was one percent per year. During the time we participated in the SBLF, our assets continued to grow and the capital provided by the SBLF program augmented our capital position to support the growth. After the redemption, the bank’s capital levels continue to exceed the levels required by regulatory standards to be classified as “well capitalized,” which is the highest of the five regulator-defined capital categories used to describe an institution’s capital strength.”
For additional information about Carolina Alliance, please call (864) 208-BANK (2265) or visit www.carolinaalliancebank.com.
CONTACTS: John S. Poole (864) 542-2615 John D. Kimberly (828) 255-5711
Source:Carolina Alliance Bank