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Mid Penn Bancorp Repurchases Entire $10 Million of Preferred Stock Issued Under TARP
Jan 2 - The board of directors of Mid Penn Bancorp Inc. (NASDAQ: MPB) has announced the repurchase and the redemption all of its series A preferred stock that was issued to the U.S. Treasury under the TARP Capital Purchase Program. Mid Penn repurchased the preferred stock for a price equal to the aggregate liquidation amount of $10 million, plus accrued but unpaid dividends of $59,722.22.
The redemption will eliminate approximately $500,000 in annual preferred dividends Mid Penn has paid on the preferred stock since its issuance.
"We are pleased and proud to make this announcement and we believe that our full repayment to TARP validates the strength and stability of Mid Penn," said President and CEO Rory G. Ritrievi. "The CPP program, instituted by the United States Treasury in 2008, allowed qualifying banks the opportunity to effectively stay in the lending business. Now, four years later, we feel it is in the best interests of our shareholders to thank the Federal Government by repaying that investment in full, even after paying all preferred dividends due over time. Mid Penn is in a position to do this as a result of successful years of income and capital preservation in 2010, 2011 and 2012."
In conjunction with Mid Penn's participation in TARP, in 2008 it issued to the U.S. Treasury a warrant to purchase up to 73,099 shares of common stock. Currently, Mid Penn intends to repurchase this warrant from the U.S. Treasury.
About Mid Penn Bank
Mid Penn Bank, a subsidiary of Mid Penn Bancorp Inc. (Nasdaq:MPB), has been serving Central Pennsylvania since 1868. Headquartered in Millersburg, Pa., Mid Penn Bank has 14 retail locations in Cumberland, Dauphin, Northumberland and Schuylkill Counties. The bank offers a diverse portfolio of products and services to meet personal and business banking needs of the community. To learn more about Mid Penn Bank, visit www.midpennbank.com.