OAK RIDGE, N.C., Nov. 21, 2014 (GLOBE NEWSWIRE) -- Oak Ridge Financial Services, Inc. (OTCQB:BKOR) (the "Company"), the one bank holding company of Bank of Oak Ridge, Oak Ridge, North Carolina, today announced it has sent required thirty day notice letters to owners informing them of redemption (the "Partial Redemption") on or around December 21, 2014 of 2,500 shares, or 32.5%, of its 7,700 shares of outstanding Fixed Rate Cumulative Perpetual Preferred Stock, Series A ("Series A Preferred Stock") that were originally issued to the United States Department of the Treasury ("U.S. Treasury") under the Troubled Asset Relief Program Capital Purchase Program ("TARP"). In November 2013, the U.S. Treasury sold all 7,700 shares of Series A Preferred Stock previously held by it to private investors. Following completion of the Partial Redemption on or around December 21, 2014, 5,200 shares of Series A Preferred Stock will remain outstanding.
The redemption price for the shares of Series A Preferred Stock will be the stated liquidation preference amount of $1,000 per share, plus accrued and unpaid dividends. The total aggregate redemption price of the shares of Series A Preferred Stock that will be redeemed in the Partial Redemption is approximately $2.5 million.
Following completion of the Partial Redemption, the capital ratios of Bank of Oak Ridge are expected to continue to exceed regulatory capital standards to be categorized as well-capitalized.
About Oak Ridge Financial Services, Inc.
Oak Ridge Financial Services, Inc. (OTCQB:BKOR) is the holding company for Bank of Oak Ridge. Bank of Oak Ridge (http://www.BankofOakRidge.com) is a community bank with locations in Greensboro, Summerfield and Oak Ridge, North Carolina. The bank was established in 2000 with the goal of delivering Banking As It Should Be®. With a focus on providing personal attention and convenience for every client, we offer a complete range of banking services for individuals and businesses including Saturday and extended weekday hours at all locations, ATM usage world-wide, remote deposits for businesses, mobile banking and deposit, and a full line of checking accounts; savings accounts; mortgage services; insurance services; lending options; and wealth management services. Bank of Oak Ridge is a Member FDIC and Equal Housing Lender. For more information, call 336-644-9944 or visit the office location closest to you.
Forward-looking Information
This form contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management of the Company and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of words like "expect," "anticipate," "estimate" and "believe," variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, (1) competition in the Company's markets, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectibility of loans, (4) legislative or regulatory changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations and (7) other risks and factors identified in the Company's other filings with the Federal Deposit Insurance Corporation. The Company undertakes no obligation to update any forward-looking statements.