Listed Security Bank Corp. will start seeking regulatory approvals for its planned capital hike, which came after it secured go signal from shareholders to issue P1-billion worth of preferred shares.
A disclosure to the Philippine Stock Exchange showed that shareholders of Security Bank approved on Tuesday the creation of one billion preferred shares with par value of 10 centavos. The preferred shares will be voting, noncumulative, nonparticipating, and nonconvertible.
As a result, the creation of the preferred shares will require increasing the bank’s authorized capital from P10 billion to P10.1 billion to accommodate P100-million worth of preferred shares.
The bank plans to issue 602.83 million preferred shares to holders of common stock through a one-for-one rights offering after the distribution of the 20-percent common stock dividend, the disclosure further said.
Upon receipt of regulatory approvals, the preferred shares will be offered to eligible common stock holders, with each eligible stockholder entitled to subscribe to one voting preferred share for every one common stock held as of the record date.
The record date will be determined after the receipt of regulatory approvals, while the timetable for the issuance of the preferred shares still depends on the approval of regulators, specifically Bangko Sentral ng Pilipinas and the Securities and Exchange Commission.
Meanwhile, Security Bank said in a separate disclosure on the same day that its board has approved its plant to issue up to P15 billion long-term negotiable certificates of deposits (LTNCD), or high-yielding deposits.
As of September 30, 2013, the bank’s total assets increased by 9 percent year-on-year to P276 billion, deposits grew by 33 percent to P184 billion, and loans grew by 34 percent to P145 billion.
“Loans went to power, utilities, tollways and ports, as well as wholesale and retail trade, food and agriculture, consumer goods and other vital sectors of the economy,” Security Bank said.
The bank’s gross nonperforming loan (NPL) ratio of 0.53 percent as of September 30, 2013, continues to be among the lowest in the Philippine banking industry, while its NPL reserve cover ratio of 259 percent continues to be among the highest.
Meanwhile, Security Bank said that it will temporarily waive automated teller machine (ATM) fees on all their clients’ ATM transactions in Tacloban and Ormoc, which were both hard hit by Typhoon Yolanda.
The bank added that clients that would benefit in the waiving of ATM fees were those who have been displaced and will be using other bank ATM’s.
Security Bank also reported that its Tacloban City branch begun its full operations on Monday, while the its branches in the swath of Central Visayas affected by Yolanda have been reported to also be fully operational and serving the public.
These branches include: Ormoc Branch (Leyte), Tagbilaran Branch (Bohol), Roxas City Branch (Capiz) Cebu Branches inCebu Business Park, Mandaue, Mandaue North Road, Juan Luna, Lapu-Lapu and Osmeña, Dumaguete (Negros Oriental), Bacolod and Bacolod-Rizal (Negros Occidental), Iloilo City and Iloilo-Iznart (Iloilo), Catarman (Samar), Puerto Princesa (Palawan) and Calapan (Mindoro).
“Security Bank ATM services in the areas aforementioned have also been in operational for cash withdrawals and other client transactions,” the bank said.
Security Bank opened 11 branches during the third quarter of 2013, bringing the group’s network to 229 branches. The universal bank has 191 branches and thrift bank subsidiary Security Bank Savings has 38 branches. Security Bank group’s branch network had increased by 68 percent, or by 93 branches, from 136 branches in early 2012.
WITH REPORT FROM MAYVELIN U. CARABALLO