ST. LOUIS, Nov. 7, 2012 (GLOBE NEWSWIRE) -- Enterprise Financial Services Corp (Nasdaq:EFSC) announced today that it has repurchased the $35 million in preferred stock it issued to the U.S. Treasury under the Troubled Asset Relief Program (TARP) Capital Purchase Program. The preferred shares were repurchased at their full face value. In addition, the Company paid $0.4 million in accrued and unpaid dividends on the shares.
"We agreed to participate in the Capital Purchase Program in late 2008 as an efficient means to supplement our capital strength and support continued growth during a time of economic uncertainty," said Peter Benoist, President and CEO. "Since then we've accomplished those objectives, growing our assets by almost 30% and completing four FDIC-assisted acquisitions. Now, with the economy showing signs of recovery and given our stronger capital and liquidity positions, we decided the time was right to repurchase the preferred stock in full."
In connection with the repurchase, the Company will recognize a $0.9 million, or approximately $0.03 per share, noncash acceleration of discount on the preferred stock that will reduce net income available for common shareholders in the fourth quarter. The Company also intends to repurchase the 324,074 common stock warrants that it issued to the U.S. Treasury as part of its participation in the Capital Purchase Program.
Enterprise Financial operates commercial banking and wealth management businesses in metropolitan St. Louis, Kansas City and Phoenix. Enterprise is primarily focused on serving the needs of privately held businesses, their owner families, executives and professionals.
Readers should note that in addition to the historical information contained herein, this press release contains forward-looking statements, which are inherently subject to risks and uncertainties that could cause actual results to differ materially from those contemplated from such statements. We use the words "expect" and "intend" and variations of such words and similar expressions in this communication to identify such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the outcome of negotiation with the U.S. Treasury to repurchase the warrant, burdens imposed by federal and state regulations of banks, credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to local and national economic conditions, risks associated with rapid increase or decrease in prevailing interest rates, effects of mergers and acquisitions, effects of critical accounting policies and judgments, legal and regulatory developments and competition from banks and other financial institutions, as well as other risk factors described in the Company's 2011 Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events unless required under the federal securities laws.
Jerry Mueller, Senior Vice President (314) 512-7251 Ann Marie Mayuga, AMM Communications (314) 485-9499