Jan 29 - Crazy Woman Creek Bancorp Inc. (OTCQB: CRZY) has announced that the Federal Reserve Bank recently approved its request for permission to redeem 1500 of the preferred series A shares originally issued in February 2009 to the U.S. Treasury Department under the Treasury's Capital Purchase Program. Crazy Woman Creek Bancorp redeemed 1,000 shares for $1 million on Jan. 8, 2014, and has advance regulatory approval to redeem the additional 500 shares of the outstanding balance at a time it chooses, with the intention to redeem these additional shares no later than the second quarter of 2014. Beyond that, Crazy Woman Creek Bancorp is on schedule in the execution of its strategic plan to redeem the remaining 1,600 outstanding shares of the preferred series A and 155 shares of preferred series B which would constitute full repurchase of outstanding obligations under the Treasury's Capital Purchase Program.
"We are pleased to be able to redeem the shares using existing balance sheet resources," said Paul Brunkhorst, president and CEO. "During the last fiscal year, we paid $168,000 in dividends on this obligation to the Treasury. With the dividend rate scheduled to increase to 9 percent on Feb. 20, 2014, the dividend expense on the preferred shares would have increased to $292,950 annually. When complete, the purchase of these 1,500 series A shares would reduce the future dividend expense to $157,950 on an annualized basis. The forthcoming dividend rate increase reinforces the importance of this initial share redemption along with the timely execution of the strategic plan."
Crazy Woman Creek Bancorp originally issued 3,100 shares of series A and 155 shares of series B to Treasury in February 2009. This redemption will not reduce book value per common share or tangible book value per common share and continues to exceed all regulatory definitions for "well capitalized" status.
"We are also pleased to announce that the initial publication of our intent to convert to a Wyoming State-chartered bank and holding company is to occur on Jan. 29, 2014," added Brunkhorst. "The publication is only the first of a number of steps that we will undertake in the following months in making the determination of what is ultimately the most suitable charter for our bank. It is anticipated that a substantial reduction in bank assessment costs along with increased flexibility across all bank operations would prove to be a competitive advantage for our bank operating in Wyoming's rural communities and an important element in the consideration of a Wyoming State charter."
About the Company
Crazy Woman Creek Bancorp Inc. is the holding company for Buffalo Federal Savings Bank, a community bank established in 1936. Thanks to local control with an eye on expanding area economies, we have grown to meet the banking needs of communities throughout Central Wyoming with the Banks of Gillette, Sheridan and Casper. Recognizing the importance of local decision-making, BFSB Mortgage provides real estate lending services through additional offices in Cheyenne and Evanston. With over 50 employees in their local communities and assets of $121 million, The Banks of Buffalo, Gillette, Sheridan and Casper and BFSB Mortgage proudly serve the needs of individuals, families and businesses throughout Wyoming. The shares of Crazy Woman Creek Bancorp Inc. are traded on the OTCBB under the symbol "CRZY."