Two River plans redemption of remaining preferreds by February 2016

By Jennifer Chiou

New York, Dec. 12 – Two River Bancorp announced that it received regulatory approval to redeem $6 million of non-cumulative perpetual series C preferred stock issued under the Treasury’s Small Business Lending Fund Program.

The company added that it plans to redeem the remaining $6 million in advance of a dividend rate increase scheduled for February 2016.

The initial $6 million of securities will be redeemed at their liquidation value of $1,000 per share plus accrued dividends through Dec. 14.

Since July 1, 2013, the dividend rate on the stock has been 1% and will remain fixed at 1% until February 2016, when it will increase to 9%, the company said in a press release filed with the Securities and Exchange Commission.

The company received $12 million of preferred stock under the program in August 2011. The program provided tier 1 capital to community banks with assets of $10 billion or less.

Two River is the holding company for Two River Community Bank, which is based in Tinton Falls, N.J.

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