OVERLAND PARK, Kan.--(BUSINESS WIRE)--Blue Valley Ban Corp. (OTCQX: BVBC) (the “Company”) today reported that the Company has received regulatory approval for a transaction (the “Transaction”) to redeem its $21.75 million of Series A Fixed Rate Cumulative Preferred Stock (the “Series A”). The Series A was originally issued and sold by the Company pursuant to the Treasury’s Capital Purchase Plan as part of the Troubled Asset Relief Program (“TARP”). As part of the Transaction, the Company also repaid associated accumulated dividends and interest. The Transaction includes issuance of Common Stock and Series B Convertible Preferred Stock to Chairman and CEO Robert D. Regnier and a third party investor as well as term loan funding provided by a third party lender and existing liquidity. The transaction is expected to reduce the Company’s annual cost of capital by nearly $2 million.
“The availability of additional capital through the TARP program during the financial downturn allowed the Company to maintain strong capitalization over the last six and a half years,” said Robert D. Regnier, Chairman and CEO of Blue Valley Ban Corp. “Improved earnings and asset quality over this period have allowed us to replace this temporary source of capital with more permanent common equity that will contribute to and enable the future growth and profitability of the Company.”
About Blue Valley Ban Corp.
Blue Valley Ban Corp. is a bank holding company that, through its subsidiaries, provides banking services to closely-held businesses, their owners, professionals and individuals in Johnson County, Kansas. In addition, the Company originates residential mortgages locally and nationwide through its InternetMortgage.com and bankbv.com websites.
This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of those safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, can generally be identified by use of the words "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," or the negative of these terms or other comparable terminology. The Company is unable to predict the actual results of its future plans or strategies with certainty. Factors which could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to, fluctuations in market rates of interest and loan and deposit pricing; inability to maintain or increase deposit base and secure adequate funding; a continued deterioration of general economic conditions or the demand for housing in the Company's market areas; a deterioration in the demand for mortgage financing; legislative or regulatory changes; regulatory action; continued adverse developments in the Company's loan or investment portfolio; any inability to obtain funding on favorable terms; the Company’s non-payment on Fixed Rate Cumulative Preferred Stock or Trust Preferred Securities; the loss of key personnel; significant increases in competition; potential unfavorable actions from rating agencies; potential unfavorable results of litigation to which the Company may become a party, and the possible dilutive effect of potential acquisitions or expansions. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time, and it is not possible for us to predict all risk factors. Nor can we address the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
