For the first time in its 15 year history, First Bank of Georgia’s parent company issued a dividend.
Georgia-Carolina Bancshares paid out 4 cents per share on Tuesday.
Dividends are payments made by a corporation to its shareholder. Up until now, profits have been re-invested in the company.
Now, why do you pay out a dividend when you’ve never done it before?
“The payment of this dividend and the recent announcement of our plans to establish a new branch office in Evans are indicative of the stability of our company and the Augusta market,” said chief executive Remer Brinson III.
So it is a statement on the bank’s health.
“Historically, we have retained all of our capital for our growth,” Brinson explained. “With this economy, our growth has slowed, but our earnings are still strong.”
The 4 cents per share represents a 2.5 percent return on share price, which is how they settled on that amount for the dividend. The last check of shares for GECR on the over the counter exchange showed $8.75 per share.
Brinson said the company has about 3.5 million shares outstanding, so the payout from the company’s capital to the shareholders was $140,000 total.
The cash payment went out on Tuesday for the shareholders of record as of May 8.
CYBER DEFENSE: Saw a report that the 780th Military Intelligence Brigade is doing some recuitment of civilians. It will be hiring 400 employees over the next three years.
The Army’s cyber systems intelligence and security unit at Fort Meade near Tampa already has 800 military personnel.
Now, most of the hires will work at Fort Meade, but “some” will be assigned to Fort Gordon.
The unit is rather new, approved in 2010 and not activated until last autumn.