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WashingtonFirst Bankshares announces payment of remaining USD8.9m preferred stock under SBLF.

M2 EQUITYBITES-October 7, 2015-WashingtonFirst Bankshares announces payment of remaining USD8.9m preferred stock under SBLF

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WashingtonFirst Bankshares Inc (NASDAQ:WFBI) has paid off the remaining USD8.9m of preferred stock issued in connection with its participation in the Small Business Lending Fund (SBLF) issued in 2011, it reported on Wednesday.

The company added that the dividend rate on the SBLF preferred stock, that had remained constant at 1%, was scheduled to increase to 9% in February of 2016.

Further, the company stated that it has paid off the outstanding SBLF partly with the proceeds of a private placement of USD25m of ten-year subordinated notes (the notes) to institutional investors, which closed on 5 October 2015. These notes will qualify as Tier 2 capital and bear interest at a fixed rate of 6.00% for the first five years and thereafter, a floating interest rate.

Keefe Bruyette & Woods Inc, a Stifel Company and Sandler O'Neill + Partners LP served as placement agents for the notes, the company said and added that the remaining net proceeds from the notes' sale have been injected as equity capital into its subsidiary, WashingtonFirst Bank, which used a part of such capital to redeem its outstanding USD2.5m of 8.00% subordinated notes maturing in 2021.

According to the company, its total consolidated risk-based capital will increase by about USD13.1m, the result of the net effect of these transactions.

Based in Reston, Virginia, WashingtonFirst Bankshares is the parent of WashingtonFirst Bank, which operates 17 full-service banking offices in the Washington DC metropolitan area. The company provides wealth management services as well through its subsidiary, 1st Portfolio Wealth Advisors and mortgage banking services through the bank's subsidiary, 1st Portfolio Lending Corporation.

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Publication:M2 EquityBites (EQB)
Date:Oct 7, 2015
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