Annapolis Bancorp Repays 50% of TARP
19 April 2012 - 12:44AM
Business Wire
Annapolis Bancorp, Inc. (NASDAQ: ANNB), parent company of
BankAnnapolis, today repaid one-half of its $8.2 million TARP
obligation to the U.S. Treasury.
In a transaction approved by the Federal Reserve, its primary
regulator, Annapolis Bancorp, Inc. (the “Company”) redeemed 4,076
shares of its Fixed Rate Cumulative Perpetual Preferred Stock,
Series A, issued to the U.S. Treasury Department under the TARP
Capital Purchase Program in January of 2009, at a redemption price
of $4,076,000.
“We are very pleased to take this significant step forward,
which was made possible by the strength and consistency of our
earnings and substantial improvement in our asset quality,” said
Richard M. Lerner, Chairman and CEO of Annapolis Bancorp, Inc. and
BankAnnapolis. “Ten consecutive profitable quarters have solidified
our capital ratios and positioned us to make this pay down without
having to raise additional capital through a potentially dilutive
stock offering. If trends continue, we fully expect to meet our
goal of paying off the balance of our TARP obligation before the
scheduled dividend rate increases from 5% to 9% in January of
2014.”
Since receiving the TARP investment, the Company has paid the
U.S. Treasury over $1.2 million in preferred stock dividends and
has never missed a quarterly dividend payment. “We believe the U.S.
Treasury made a sound investment in Annapolis Bancorp and,
obviously, it has earned a healthy return on that investment,” said
Lerner. “We are proud to have met our obligations to the U.S.
taxpayer, and prouder still to be able to free up half of what we
have been paying to the Treasury in quarterly preferred stock
dividends and now make it available to our common
shareholders.”
At March 31, 2012, the Company exceeded all federal regulatory
requirements for a well-capitalized institution with a Tier 1
capital ratio of 12.7%, a total capital ratio of 14.0%, and a Tier
1 leverage ratio of 9.6%. If today’s TARP redemption had been
effective on March 31, 2012, the Company still would have surpassed
the regulatory guidelines for a well-capitalized institution, with
a Tier 1 capital ratio of 11.5%, a total capital ratio of 12.8%,
and a Tier 1 leverage ratio of 8.6%.
After completion of the redemption announced today, another
4,076 shares of Series A Preferred Stock, with an aggregate
liquidation amount of $4,076,000, together with a warrant to
purchase up to 299,706 shares of the Company’s common stock at an
exercise price of $4.08 per share, remain outstanding and held by
the Treasury Department.
At March 31, 2012, the Company’s tangible book value per common
share was $7.51, and its common stock closed yesterday, April 17,
2012, at a market price of $5.70.
BankAnnapolis serves the banking needs of small businesses,
professional concerns, and individuals through seven community
banking offices located in Anne Arundel and Queen Anne’s Counties
in Maryland. The Bank was named 2011 Corporate Philanthropist of
the Year by the Community Foundation of Anne Arundel County based
on its direct support of local nonprofits, the impact of that
support, success in motivating employees to make charitable
contributions, and the CEO’s philanthropic leadership and ability
to encourage and motivate others to give back. BankAnnapolis also
received the 2011 Financial Services Award from the Annapolis and
Anne Arundel County Chamber of Commerce for its innovation and
leadership in the identification of financial products and services
that best fit the needs of the community.
This press release may contain forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are based on management’s current
expectations and involve certain risks and uncertainties which
could cause actual results to differ materially from those
expressed in forward-looking statements. Factors that might cause
such a difference include, but are not limited to: (i) the rate of
declining growth in the economy and employment levels, as well as
general business and economic conditions; (ii) changes in interest
rates, as well as the magnitude of such changes; (iii) the fiscal
and monetary policies of the federal government and its agencies;
(iv) changes in federal bank regulatory and supervisory policies,
including required levels of capital; (v) the relative strength or
weakness of the consumer and commercial credit sectors and of the
real estate market; (vi) the performance of the stock and bond
markets; (vii) competition in the financial services industry;
(viii) possible legislative, tax or regulatory changes, and; (ix)
such other risks and uncertainties as set forth in the Company’s
filings with the Securities and Exchange Commission. Other than to
the extent required by applicable law, including the requirements
of applicable securities laws, the Company does not undertake, and
specifically disclaims any obligation to update any forward-looking
statements to reflect occurrences or unanticipated events or
circumstances after the date of such statements.
The Company is not responsible for changes made to this press
release by wire services, Internet service providers or other
media.
Annapolis Bancorp Inc. (MM) (NASDAQ:ANNB)
Historical Stock Chart
From Apr 2024 to May 2024
Annapolis Bancorp Inc. (MM) (NASDAQ:ANNB)
Historical Stock Chart
From May 2023 to May 2024