Security Bank issues preferred shares

The shareholders of Security Bank Corporation (PSE: SECB) approved today the creation of one billion preferred shares with par value of P0.10. The preferred shares will be voting, non-cumulative, non-participating and non-convertible. The creation of the preferred shares will require increasing the authorized capital from P10.0 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% common stock dividend. 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. The timetable for the issuance of the preferred shares will be dependent on the approval of regulators Bangko Sentral ng Pilipinas and the Securities and Exchange Commission.

Security Bank continues to pursue growth with quality. As of 30 September 2013, its total assets increased by 9% year-on-year to P276 billion, deposits grew by 33% to P184 billion, and loans grew by 34% 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 group’s branch network increased by 93 branches from 136 branches at the beginning of 2012 to a total of 229 branches as of 30 September 2013. The universal bank has 191 branches and thrift bank subsidiary Security Bank Savings has 38 branches. The Bank’s gross non-performing loan (NPL) ratio of 0.53% as of September 30, 2013 continues to be among the lowest in the Philippine banking industry while its NPL reserve cover ratio of 259% continues to be among the highest.

The Bank”™s P1.00 per share cash dividend for the second semester is payable on 27 December 2013 to shareholders on record as of 29 November 2013. This will bring the total cash dividend for the year to P2 per share. The record date for the 20% stock dividend is on 2 December 2013, while payment date falls on 2 January 2014.

Security Bank was awarded in September 2013 with six awards by Asiamoney as “Best Domestic Bank”, “œBest Domestic Debt House”, “œBest Overall Domestic Provider of FX
Services”, “œBest Domestic Provider for FX Products and Services”, “œBest Domestic Provider for FX Research and Market Coverage”, and “œBest Domestic Provider for FX Options” in the Philippines. In April 2013, the Bank was awarded by The Asian Banker of Singapore as the “Best Managed Bank in the Philippines”. Security Bank President and CEO Mr. Alberto S. Villarosa was awarded as the “Best CEO for the Philippines” in The Asian Banker CEO Leadership Award for the period 2011-2013 in April 2013 in Jakarta, Indonesia. In 2012, Security Bank was awarded by The Banker of the Financial Times of London as the “Bank of the Year” in the Philippines, and by The Asian Banker as the
“œStrongest Bank in the Philippines”.