Annual report pursuant to Section 13 and 15(d)

Note 12 - Participation in the Small Business Lending Fund of the U.S. Treausury Department

v3.8.0.1
Note 12 - Participation in the Small Business Lending Fund of the U.S. Treausury Department
12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]
NOTE
12.
PARTICIPATION IN THE SMALL BUSINESS LENDING FUND OF THE U.S. TREASURY DEPARTMENT
 
On
July 31, 2015,
the Company redeemed all
40,000
shares of its Senior Non-Cumulative Perpetual Preferred Stock, Series A, issued to the U.S. Treasury Department on
June 21, 2011,
for
$40,033,000
in the aggregate, including accrued dividends.
 
The Preferred Stock, Series A, was issued pursuant to the Treasury’s Small Business Lending Fund program, a
$30
billion fund established under the Small Business Jobs Act of
2010,
which encourages lending to small businesses by providing capital to qualified community banks with assets of less than
$10
billion. The Series A Preferred Stock was entitled to receive non-cumulative dividends payable quarterly on each
January 1,
April 1,
July 1
and
October 1,
commencing
October 1, 2011.
The dividend rate, which was calculated on the aggregate Liquidation Amount, was initially set at
1%
per annum based upon the current level of “Qualified Small Business Lending” (“QSBL”) by the Bank. The dividend rates for subsequent dividend periods were based upon the percentage change in qualified lending between each dividend period and the baseline QSBL level established at the time the Agreement was effective and would have increased to
9%
in
December 2015.
Such dividend rate was
1%
per annum throughout its period outstanding based on the QSBL by the Bank.