BUFFALO, Wyo., Jan. 28, 2014 (GLOBE NEWSWIRE) -- Crazy Woman Creek Bancorp, Inc. (OTCQB:CRZY) today 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 ("Treasury") under the Treasury's Capital Purchase Program. Crazy Woman Creek Bancorp redeemed 1,000 shares for $1.0 million on January 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 9.0% on February 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 January 29th, 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 fifty 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."
Forward Looking Statements
Statements in this release that are not historical facts, including, but not limited to, statements concerning future operations, results or performance, are hereby identified as "forward looking statements." Crazy Woman Creek Bancorp, Incorporated cautions that such "forward looking statements," wherever they occur in this release or in other statements attributable to Crazy Woman Creek Bancorp, Incorporated are necessarily estimates reflecting the judgment of Crazy Woman Creek Bancorp, Incorporated senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the "forward looking statements." Some factors that could affect the accuracy of such "forward looking statements" include general economic conditions, especially in Wyoming; the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes in the competitive environment in the market served by Crazy Woman Creek Bancorp, Incorporated; and changes in the loan portfolio and the deposit base of Crazy Woman Creek Bancorp, Incorporated. Crazy Woman Creek Bancorp, Incorporated disclaims any intent or obligations to update such "forward looking statements."
If you'd like more information about this topic, or to schedule an interview with Paul Brunkhorst, CEO or Carolyn Kaiser, CFO please call (307) 684-5591 or email Paul at Pbrunkhorst@thebank-buffalo.com.