Bankwell Financial reports stock redemption.
Global Banking News-November 23, 2015--Bankwell Financial reports stock redemption
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Global Banking News - 23 November 2015
Bankwell Financial Group Inc. (NASDAQ: BWFG) has said that it has redeemed USD10.98m (10,980 shares) of preferred stock issued pursuant to the United States Department of Treasury under the Small Business Lending Fund Programme (the SBLF).
The shares were redeemed at their liquidation value of USD1,000.00 per share plus accrued dividends to November 20, 2015. The SBLF is a USD30bn 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 USD10bn.
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 percent 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 USD50m IPO and an USD25.5m subordinated note offering. With a solid capital structure in place, we are well positioned for profitable growth.'
Bankwell is a commercial bank that serves the banking and lending needs of residents and businesses throughout Fairfield and New Haven Counties, CT.
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