Independent Bank Corporation Exits TARP
IONIA, Mich., Sept. 3, 2013
IONIA, Mich., Sept. 3, 2013 /PRNewswire/ --Independent Bank Corporation
(NASDAQ: IBCP) (the "Company") announced today that it completed the
redemption of all of the shares of its Fixed Rate Cumulative Mandatorily
Convertible Preferred Stock, Series B (including all accrued and unpaid
dividends) and related Warrant, both issued to the U.S. Department of the
Treasury (the "Treasury") under the Troubled Asset Relief Program (TARP)
Capital Purchase Program. On Aug. 30, 2013, the Company paid a total of $81.0
million pursuant to the terms and conditions of the previously announced
Securities Purchase Agreement, dated July 26, 2013, between the Company and
the Treasury. As a result, the Treasury no longer has any equity interest in
The redemption of the Preferred Stock and Warrant will result in annualized
savings of approximately $4.6 million due to the elimination of the associated
preferred dividends and related discount accretion.
The completion of this redemption was preceded by the Company's successful
public offering of 11,500,000 shares of common stock in exchange for gross
proceeds to the Company, before expenses, of $89.1 million on Aug. 28, 2013,
and the Company's payment of all deferred interest with respect to each of the
Company's subordinated debentures and related trust preferred securities on
Aug. 29, 2013.
"Our exit from TARP represents the culmination of a very challenging and
eventually rewarding period in the history of our organization," said Brad
Kessel, President and CEO of the Company and Independent Bank. "In December
of 2008 we were pleased that the Treasury thought enough of Independent Bank
to support us under its TARP Program with a $72.0 million investment. Less
than five years later, we repaid the aggregate financial assistance provided
to us and have been able to completely exit the TARP Program. This is the
epitome of a total team effort, reflective of the dedication and commitment of
our employees and the support of our shareholders and customers as well as the
communities we serve." Mr. Kessel commented further, "We now look forward to
further strengthening our customer relationships and enhancing the value of
our shareholders' investment in Independent Bank Corporation."
About Independent Bank Corporation
Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding
company with total assets of approximately $2.1 billion. Founded as First
National Bank of Ionia in 1864, Independent Bank Corporation currently
operates a 71-branch network across Michigan's Lower Peninsula through one
state-chartered bank subsidiary. This subsidiary (Independent Bank) provides
a full range of financial services, including commercial banking, mortgage
lending, investments and title services. Independent Bank Corporation is
committed to providing exceptional personal service and value to its
customers, stockholders and the communities it serves.
For more information, please visit our Web site at: www.IndependentBank.com.
Any statements in this news release that are not historical facts are
forward-looking statements as defined in the Private Securities Litigation
Reform Act of 1995. Words such as "expect," "believe," "intend," "estimate,"
"project," "may" and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are predicated on
management's beliefs and assumptions based on information known to Independent
Bank Corporation's management as of the date of this news release and do not
purport to speak as of any other date. Forward-looking statements include
descriptions of plans and objectives of Independent Bank Corporation's
management for future or past operations, products or services, and forecasts
of the Company's revenue, earnings or other measures of economic performance.
Such statements reflect the view of Independent Bank Corporation's management
as of this date with respect to future events and are not guarantees of future
performance, involve assumptions and are subject to substantial risks and
uncertainties, such as the changes in Independent Bank Corporation's plans,
objectives, expectations and intentions. Should one or more of these risks
materialize or should underlying beliefs or assumptions prove incorrect, the
Company's actual results could differ materially from those discussed. Factors
that could cause or contribute to such differences include the ability of
Independent Bank Corporation to meet the objectives of its capital plan, the
ability of Independent Bank to remain well-capitalized under federal
regulatory standards, the pace of economic recovery within Michigan and
beyond, changes in interest rates, changes in the accounting treatment of any
particular item, the results of regulatory examinations, changes in industries
where the Company has a concentration of loans, changes in the level of fee
income, changes in general economic conditions and related credit and market
conditions, and the impact of regulatory responses to any of the foregoing.
Forward-looking statements speak only as of the date they are made.
Independent Bank Corporation does not undertake to update forward-looking
statements to reflect facts, circumstances, assumptions or events that occur
after the date the forward-looking statements are made. For any
forward-looking statements made in this news release or in any documents,
Independent Bank Corporation claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995.
SOURCE Independent Bank Corporation
Contact: William B. (Brad) Kessel, President and CEO, 616.447.3933, or Robert
N. Shuster, Chief Financial Officer, 616.522.1765
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