NEW CANAAN, Conn.--(BUSINESS WIRE)--
Bankwell Financial Group, Inc. (NASDAQ: BWFG), has redeemed $10.98
million (10,980 shares) of preferred stock issued pursuant to the United
States Department of Treasury ("Treasury") under the Small Business
Lending Fund Program (the "SBLF"). The SBLF is a $30 billion fund
established under the Small Business Jobs Act of 2010 to encourage
lending to small businesses by providing Tier 1 Capital to qualified
community banks with assets of less than $10 billion.
The shares were redeemed at their liquidation value of $1,000 per share
plus accrued dividends through November 20, 2015.
Background on the Company and SBLF
On August 4, 2011, the Treasury approved our request to repay the
Treasury’s preferred stock investment through participation in the SBLF.
We sold 10,980 shares of Senior Non-Cumulative Perpetual Preferred
Stock, Series C, no par value, or Series C Preferred Stock, having a
liquidation preference of $1,000 per preferred share, to the Treasury
and simultaneously repurchased all of the Series A Preferred Stock and
Series B Preferred Stock sold to the Treasury in 2009. The transaction
resulted in net capital proceeds to us of $5.9 million, of which at
least 90% was invested in the Bank as Tier 1 Capital.
The redemption was approved by the Company's primary federal regulator
and will be funded with the Company's surplus capital. With this
redemption, Bankwell has redeemed all of its outstanding SBLF stock.
“As part of our long-term capital management strategy, we are pleased to
announce our exit from the SBLF program,” said Christopher R. Gruseke,
Chief Executive Officer and President of Bankwell Financial Group. “We
will repay 100% of the total with no dilution to our current shareholder
base. The SBLF program was a valuable capital source for the Company as
we expanded into new markets and grew our reputation as a small business
lender. In addition to the bank’s accumulated earnings since 2011 and
subsequent to our participation in the SBLF program, Bankwell also
successfully completed a $50 million IPO and a $25.5 million
subordinated note offering. With a solid capital structure in place, we
are well positioned for profitable growth.”
About Bankwell Financial Group
Bankwell is a commercial bank that serves the banking and lending needs
of residents and businesses throughout Fairfield and New Haven Counties,
CT. For more information about this press release, interested parties
may contact Christopher R. Gruseke, President and Chief Executive
Officer or Ernest J. Verrico Sr., Executive Vice President and Chief
Financial Officer of Bankwell Financial Group at (203) 652-0166.
For more information, visit www.mybankwell.com.
This press release may contain certain forward-looking statements
about the Company. Forward-looking statements include statements
regarding anticipated future events and can be identified by the fact
that they do not relate strictly to historical or current facts. They
often include words such as "believe," "expect," "anticipate,"
"estimate," and "intend" or future or conditional verbs such as "will,"
"would," "should," "could," or "may." Forward-looking statements, by
their nature, are subject to risks and uncertainties. Certain factors
that could cause actual results to differ materially from expected
results include increased competitive pressures, changes in the interest
rate environment, general economic conditions or conditions within the
securities markets, and legislative and regulatory changes that could
adversely affect the business in which the Company and its subsidiaries
are engaged.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151120005716/en/
Bankwell Financial Group
Christopher R. Gruseke, 203-652-0166
President
and Chief Executive Officer
or
Ernest J. Verrico Sr.,
203-652-0166
Executive Vice President and Chief Financial Officer
Source: Bankwell Financial Group, Inc.