M&F Bancorp Inc (OTC: MFBP) had been one of the companies to have come on to the radars of investors on Monday morning following a significant new announcement and this morning it could be one worth watching. The second oldest Africa-American owned American bank made an announcement with regards to a critical decision made by its board.
The Announcement
The company came into focus yesterday after it announced that its board of directors had unanimously come to the decision to adopt a shareholder rights plan spanning 10 years. In the news release, the company announced that the rights plan had been put in place with the aim of ensuring that the board continued to be in the best position to do its fiduciary duties. The move was also aimed at making sure that all shareholders of M&F Bancorp continued to get equal and fair treatment.
Further Information
M&F Bancorp also announced that the plan would also allow all the shareholders to eventually hit the long term value of their investment by cutting down the chances of any individual or group to gain total control. It is going to be interesting to see if the latest announcement from the company leads to any major move or not.
CEO Quote
“We believe that the potential repurchase of the ECIP securities at a significant discount to the liquidation preference could be transformational for the M&F Bank franchise in that it would allow the Bank to continue to grow its assets, increase market share, and build on recent successes by providing additional ways to support consumers and small 4909-6015-1828.v2 businesses in our community,” commented James H. Sills, III, President and CEO of the Company and the Bank. “Additionally, should the Company successfully repurchase the ECIP securities at a meaningful discount, this could materially improve the Company’s financial condition, and, one would assume, the future market value of the Company,” continued Mr. Sills.
