Rurban Financial Corp. of Defiance, Ohio, has made the first dividend payment on its trust-preferred stock since entering into a regulatory agreement in July 2002.
The $393 million-asset company, which issued $10 million of trust-preferred in September 2000, said Wednesday that it had paid the accrued dividend Sept. 7. It did not say how much it paid and did not return several calls seeking comment.
It had not paid dividends on the securities since entering into the written agreement with the Ohio Division of Financial Institutions and the Federal Reserve Bank of Cleveland, a review of Securities and Exchange Commission filings indicates. The pact required regulatory approval to pay the dividends.
In a press release, Kenneth Joyce, its president and chief executive since August 2002, said the payment was a step toward release from the agreement, which also called for the company to review its loan portfolio and management, improve its underwriting and loan documentation, and strengthen its internal controls.
