Ohio Valley Banc Corp. Announces Redemption of Trust Preferred Securities
GALLIPOLIS, Ohio, March 12, 2013 /PRNewswire/ -- Ohio Valley Banc Corp. (OVBC) announces that on March 11, 2013, the Company redeemed all of the $5 million trust preferred securities associated with Ohio Valley Statutory Trust I. The interest rate on the trust preferred securities was 10.6% and they were originally scheduled to mature on September 7, 2030. However, the securities were callable at the Company's option at the redemption price of 104.24%. The redemption was funded with available cash and did not require any new capital or debt to be incurred by the Company.
Thomas E. Wiseman, President and CEO, stated "We are pleased to have redeemed these high-cost securities early for the anticipated favorable impact on future earnings. The annual interest expense associated with the securities totaled $530,000. Furthermore, trust preferred securities are presently treated as capital from a regulatory perspective and we felt our capital ratios going forward would not limit the Company from executing its strategic plan."
Ohio Valley Banc Corp. common stock is traded on the NASDAQ Global Market under the symbol OVBC. The holding company owns Ohio Valley Bank, with 15 offices in Ohio and West Virginia, and Loan Central, with seven consumer finance offices in Ohio. Learn more about Ohio Valley Banc Corp. at www.ovbc.com.
Contact: Scott Shockey, CFO, 1-800-468-6682 ext. 282, email@example.com
SOURCE Ohio Valley Banc Corp.