The stock of Severn Bancorp, Inc (NASDAQ:SVBI) closed at $7.30 gaining 4.29% in yesterday’s trading session. Severn was able to obtain the warrant that was previously held by the United States Department of Treasury. It made the announcement regarding the repurchase today and it is now looking forward to undertaking smooth business operations.
It was in November that the 10-year warrant was issued out and that was to be part of the company’s involvement in the Treasury’s Capital Purchase Program.
The President of the company, Alan J. Hyatt said, “The warrant was repurchased by the Company pursuant to a letter of agreement between the Treasury and the Company for a total repurchase price of $520,000, or approximately $0.93 per warrant share.”
The fair market value of the warrant as agreed upon by the Treasury and Company was what was considered towards arriving at the repurchase price. He went ahead to disclose that the repurchase of the warrant at the set out price in a major way underscored the company’s continued dedication to boosting the long-term value for the various shareholders.
He revealed that at the moment the capital position of the Company kept growing stronger and was fated to significantly exceed the “well capitalized” thresholds set up by regulators.”
The company’s spokesperson in a recent interview said that they were happy about the latest accomplishment. According to him, putting the best interest of the company ahead was crucial towards upholding its vibrancy. He did not dispute it was indeed a costly affair. According to him the best part was that it had been worth it in the long run.
He looked back at the progress they had made to this point in time and moved ahead to attribute everything to hard work and grasping opportunities they came across in good time. Challenges have popped up over the years but the company’s management has always made a wild rush to counter them. The top officials said that they were not going to let anything stand between them and their success even in the future.
