Big bank bonus for community

By Kath Gannaway
WARBURTON Community Bank shareholders have been given a pat on the back for their courage and vision – and a nice big bonus to go with it.
Warburton Community Financial Services Limited last week issued bonus shares on a two for one ratio to its 321 shareholders.
“We’ve achieved a number of milestones in our relatively short history and this year the bank has reached a watershed in its growth,” executive officer Geoff Vickers told the Mail.
Mr Vickers praised the community members who had put their trust and their money on the line to provide a bank in the town.
The bonus issue was made on the basis of an independent valuation by AFS & Associates Pty Ltd presented to bank directors in October.
“The conservative valuation indicated the value of our business had trebled from $400,000 in 1999 to around $1,200,000 in 2007,” Mr Vickers said.
“This is a fantastic result for shareholders, who will receive two extra shares for each share they own.
“The bonus share issue represents an important adjustment in the context of our current and future activities,” Mr Vickers added.
The bonus issue follows a 12 cents per share dividend paid in October.
In September, board chairman Rodney McKail announced a partnership with the Yarra Junction community to establish a Community Bank Branch in Yarra Junction.
Mr Vickers said the existing company (Warburton Community Financial Services Limited) would issue additional shares in order to raise the capital required to open the branch, with preference of share allocation offered to Yarra Junction and district individuals, businesses and organisations who have already ‘pledged’ a total of more than $800,000.
Mr Vickers said shareholder approval had been given at an extraordinary general meeting in October for the company to be renamed Upper Yarra Community Enterprise Limited in order to accurately reflect the broader base of community ownership.
He said in the 2005-06 financial year Warburton Community Bank generated $846,000 in revenue with an operating surplus of $330,000, of which $36,000 was returned to shareholders as dividends and $270,000 was invested in worthwhile community projects in Warburton and the Upper Yarra.
The growth of the company has been phenomenal. The $1 shares, first listed on the Bendigo Stock Exchange in 2003, have traded as high as $1.65 and just last month bank staff and directors celebrated the achievement of $80 million on the branch books.
“In addition to enjoying the financial benefits of this bonus share issue, Warburton Community Bank shareholders should give themselves a big pat on the back for their courage and vision in making our collective dream a reality,” Mr Vickers said.