United Western Bancorp, Inc. (NASDAQ: UWBK) (the "Company”) announced
today that it has elected to defer regularly scheduled interest payments
on all of the Company’s outstanding junior subordinated debentures,
totaling approximately $30 million, relating to its trust preferred
securities under Matrix Bancorp Capital Trust II, VI and VIII (the
"Securities”) for a period of 20 consecutive quarters on each Security
(the "Deferral Period”). The terms of the Securities and the indenture
documents allow the Company to defer payments of interest for the
Deferral Period without default or penalty. During the Deferral Period,
the Company will continue to recognize interest expense associated with
the Securities. Upon the expiration of the Deferral Period, all accrued
and unpaid interest will be due and payable. During the Deferral Period,
the Company is prevented from paying cash dividends to shareholders or
repurchasing stock.
The election to defer interest payments on the junior subordinated
debentures will allow the Company to maintain a stronger cash and
liquidity position.
"In light of the challenging economy we are still currently
experiencing, the Company has elected to exercise its right to defer
interest payments on its trust preferred junior subordinated debt,” said
Scot T. Wetzel, President and Chief Executive Officer for the Company.
"This election of deferral is in the best long-term interest of our
shareholders and will allow the Company to preserve liquidity in this
challenging economic environment, and we can elect to end the deferral
at any time,” continued Mr. Wetzel.
About United Western Bancorp, Inc.
Denver-based United Western Bancorp, Inc. is focused on developing its
community-based banking network through its subsidiary, United Western
Bank®, by strategically positioning branches across Colorado’s Front
Range market and certain mountain communities. This area spans the
eastern slope of the Rocky Mountains – from Pueblo to Fort Collins, and
from metropolitan Denver to the Roaring Fork Valley. United Western Bank
plans to grow its network to an estimated ten to twelve community bank
locations over the next three to five years. In addition to
community-based banking, United Western Bancorp, Inc. and its
subsidiaries offer deposit services to institutional customers and
custodial, administrative, and escrow services through its wholly owned
subsidiary, UW Trust Company. For more information, please visit our Web
site at www.uwbancorp.com.
Forward-Looking Statements
This press release contains certain statements that may be deemed to
be "forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995 that are subject to significant
risks and uncertainties.
Forward-looking statements include those
concerning our cash and liquidity position. These statements often
include terminology such as "may,” "will,” "expect,” "anticipate,”
"predict,” "believe,” "plan,” "estimate,” "continue,” "could,” "should,”
"would,” "intend,” "projects,” or the negative thereof or other
variations thereon or comparable terminology and similar expressions.
As you consider forward-looking statements, you should understand
that these statements are not guarantees of performance or results.
They
involve risks, uncertainties and assumptions that could cause actual
results to differ materially from those in the forward-looking
statements.
These factors include, but are not limited to: the
successful implementation of our community banking strategies; the
ability to secure, timing of, and any conditions imposed thereon of any,
regulatory approvals or consents for new branches or other contemplated
actions; the availability of suitable and desirable locations for
additional branches; the continuing strength of our existing business,
which may be affected by various factors, including but not limited to
interest rate fluctuations, level of delinquencies, defaults and
prepayments, increased competitive challenges, and expanding product and
pricing pressures among financial institutions; changes in financial
market conditions, either internationally, nationally or locally in
areas in which we conduct our operations, including without limitation,
reduced rates of business formation and growth, commercial and
residential real estate development, real estate prices and other recent
problems in the commercial and residential real estate markets; demand
for loan products and financial services; unprecedented fluctuations in
markets for equity, fixed-income, commercial paper and other securities,
including availability, market liquidity levels, and pricing; increases
in the levels of losses, customer bankruptcies, claims and assessments;
the extreme levels of volatility and limited credit currently being
experienced in the financial markets; changes in political and economic
conditions, including the economic effects of terrorist attacks against
the United States and related events; legal and regulatory developments,
such as changes in fiscal, monetary, regulatory, trade and tax policies
and laws, including policies of the U.S. Department of Treasury and the
Federal Reserve Board; our participation, or lack thereof, in
governmental programs implemented under the Emergency Economic
Stabilization Act (the "EESA”), including without limitation the
Troubled Asset Relief Program ("TARP”), and the Capital Purchase Program
(the "CPP”), and the impact of such programs and related regulations on
our business and on international, national, and local economic and
financial markets and conditions.
Additional information concerning these and other factors that may
cause actual results to differ materially from those anticipated in
forward-looking statements is contained in the "Risk Factors” section
included in the Company’ Annual Report on Form 10-K filed March 15,
2010, and in the Company’s other periodic reports and filings with the
Commission. The Company cautions investors not to place undue reliance
on the forward-looking statements contained in this press release.
Any forward-looking statements made by the Company speak only as of
the date on which the statements are made and are based on information
known to the Company at that time. The Company does not intend to update
or revise the forward-looking statements made in this press release
after the date on which they are made to reflect subsequent events or
circumstances, except as required by law.
