Peoples to deregister shares
Peoples Financial Services Corp. announced Friday that as a result of the enactment of the “Jumpstart Our Business Startups Act” (the “JOBS Act”), its Board of Directors authorized Peoples to pursue the deregistration of its common stock under the Securities Exchange Act of 1934.
The company is eligible to deregister because it has fewer than 1,200 holders of record of its common stock.
People’s management and Board of Directors made this decision after careful consideration and review of the cumulative costs and pros and cons of being a SEC registered company. Peoples believes that currently the incremental cost of compliance with general SEC regulations and Sarbanes-Oxley and other reporting requirements does not provide a discernible benefit to the Company and its shareholders.
Alan W. Dakey, President and Chief Executive Officer, stated, “The decision to deregister from the SEC was driven by a desire to achieve substantial annual savings by reducing accounting, legal and administrative costs associated with being an SEC registrant. Annual savings are estimated to be approximately $150,000 per year. However, we believe that deregistration will not affect trading in our common stock. Our stock will continue to be quoted on the OTCBB.”
After the deregistration process is completed, the Company’s quarterly and annual reports, proxy statements and current reports will no longer be filed with the SEC.
The Company will continue to provide comprehensive quarterly press releases as to its financial position and financial performance. The Company will also post press releases, as well as certain quarterly and annual information on its website.
The Company will continue to provide annual reports in accordance with generally accepted accounting principles and proxy statements to shareholders. Peoples currently expects to complete the deregistration process during the third quarter of 2012.
Peoples Financial Services Corp., with consolidated assets of $631.7 million at March 31, 2012, is the bank holding company for its wholly owned subsidiary, Peoples Neighborhood Bank, which serves the communities of Lackawanna, Wyoming and Susquehanna Counties in Pennsylvania and Broome County in New York through 11 offices.
Each office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations and government entities.
In addition, customers can take advantage of PNB Online Banking services by accessing the Company’s website at http://www.peoplesnatbank.com.
Peoples Wealth Management, a division of the Bank’s subsidiary Peoples Advisors LLC, provides investment advisory services to the general public.
The Company’s business philosophy includes offering direct access to senior management and other officers and providing friendly, informed and courteous service, local and timely decision making, flexible and reasonable operating procedures and consistently applied credit policies.