Shareholders of First Citrus Bancorporation Inc. will boost their stock holdings in October.
The board of directors of the Tampa-based parent company of First Citrus Bank declared a 5 percent stock dividend, payable on Oct. 17 to shareholders of record as of Oct. 3.
The dividend would give existing investors one additional share of stock for every 20 shares they already own.
It will be paid on common stock, as well as Class A Preferred and Class B Preferred stock, a press release said.
Stock dividends are paid when a company wants to reward its investors, but either doesn’t have the capital to distribute or wants to hold on to its existing liquidity for other investments, according to Investopedia.
A request to the bank for an explanation of why it was issuing a stock dividend was pending return. A regulatory filing shows First Citrus had $25.5 million in bank equity capital as of June 30.
The dividend will increase the number of shares currently outstanding by 78,544 shares, bringing total outstanding shares to just under 1.65 million.
This is the third stock dividend paid to shareholders since the bank was formed in 1999, the press release said. Dates and amounts of the earlier dividends were not immediately available.
First Citrus, which is traded over the counter on the pink sheets under the ticker symbol FCIT, is trading at about $13 a share.
First Citrus, with $287.3 million in total assets as of June 30, reported $460,000 in net income for the first half of 2016.
See original article on Tampa Bay Business Journal website.