The Elmira Savings Bank, FSB (NASDAQ:ESBK) today announced that it has completed the issuance and sale of 10,000 shares of a new series of preferred stock to a single institutional investor at a price of $1,000 per share. This stock is noncumulative, nonvoting perpetual preferred stock with a ten-year fixed rate of 8.998%; thereafter it will be floating rate spread 4.00% over LIBOR. The preferred shares will have standard preferences over outstanding common stock in regard to dividends and liquidation rights and will have voting rights only in limited circumstances. The Bank issued and sold the shares in a private offering exempt from the Office of Thrift Supervision's offering circular regulations and were not registered under the Securities Act of 1933 or any other Federal or state securities law. The proceeds from this issuance, together with the proceeds received by the Bank from the sale of $4 million worth of its common stock, par value $1.00 per share, completed on November 16, 2007, will be used to support the acquisition of the four branches from First Niagara Bank, first publicly announced on August 10, 2007.
Elmira Savings Bank, FSB with $390.0 million in total assets, is insured by the Federal Deposit Insurance Corporation (FDIC) and is a federally chartered Bank with five offices in Chemung County, NY; one office in Steuben County, NY; one office in Tioga County, PA; and a loan center in Tompkins County, NY.
Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties, including the timely availability and acceptance of Bank products, the impact of competitive products and pricing, the management of growth, and other risks detailed from time to time in the Bank's publicly available regulatory reports.
Source: Elmira Savings Bank, FSB
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