Huron Valley Bancorp, Inc. Announces the Redemption of Stock
January 2016 – Milford, MI based Huron Valley Bancorp, Inc., the holding company for Huron Valley State Bank, announced that it has redeemed all of the 2,597 outstanding shares of Senior Non-Cumulative Perpetual Preferred Stock Series A, that had been issued to the United States Department of Treasury, pursuant to the Treasury's Small Business Lending Fund ("SBLF") program. The aggregate redemption price of the Preferred Stock was approximately $2.6 million, including accrued dividends, and was repaid with proceeds borrowed from a financial institution. The decision to redeem the stock was influenced by the scheduled increase in dividend rate at the 4 ½ year anniversary of our participation in the program.
The "SBLF" was established by the Small Business Jobs Act of 2010 and was available to healthy financial institutions to encourage them to increase small business lending in their communities. The purpose of the program was to create a partnership between community banks and small businesses to promote job creation and stimulate local economies.
Jack Shubitowski, President and CEO, said "The SBLF program was a solid source of capital for our bank at a time when accessibility and cost of capital was challenging. Since entering the program in July of 2011 Huron Valley State Bank has increased small business lending by $30 million, or 140%, and helped stimulate our neighboring businesses and the local economy".
Certain statements in this announcement contain forward-looking statements that are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "scheduled," "estimates," and variations of these words and similar expressions are intended to identify forward-looking statements. Forwarding looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors.
All forward looking statements speak only as of the date of this press release. All subsequent written and oral forward-looking statements attributable to the company or any person acting on the Corporation's behalf are qualified by the cautionary statements in this press release. The Corporation does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.
Headquartered in Milford, Huron Valley Bancorp, Inc. is the parent company of Huron Valley State Bank. The Bank offers a full range of checking and savings accounts, certificates of deposit, consumer loans, commercial loans and other financial services. The Milford branch is located at 130 S. Milford Rd. in Milford. Call (248) 684-9626. The Highland branch is located at 2920 E. Highland Rd. in Highland. Call (248) 887-9900. The common stock of Huron Valley Bancorp, Inc. is listed on the NASDAQ Global Market System under the symbol "HVLM"