There are 155,975 shares of Alden State Bank common stock outstanding. Although the exact number of shareholders will vary over the course of a year, it should number somewhere over 200. From time to time, shares of Alden State Bank common stock trade via direct transaction between a seller and a buyer. If you would like to purchase shares of Alden State Bank, you may contact us to be placed on a list of potential purchasers of Alden State Bank common stock. If you would like to sell your shares of Alden State Bank common stock, you may contact us and we will try to put you in contact with potential purchasers. The potential buyer and seller then negotiate and complete the transaction. Restrictions under various Federal and State securities regulations may apply. To complete any transfer of Alden State Bank common stock certificates or if you have any questions about our stock, please contact us at our main office in Alden at this address: Alden State Bank, 10564 Coy, P.O. Box 39, Alden MI 49612, phone (231) 331-4481. All purchasers of Alden State Bank common stock are required to provide certain information to comply with securities and banking regulations.
There is no public market for the shares of Alden State Bank common stock and we expect none to develop in the foreseeable future. Shares of Alden State Bank common stock are an illiquid investment. Transactions in the shares of Alden State Bank common stock are infrequent. Alden State Bank does not make a market in its common stock and its common stock is not listed or quoted on any securities exchange. Thus, a shareholder may not be able sell shares of Alden State Bank common stock in the future on terms acceptable to the shareholder or at all. Shares of Alden State Bank common stock are not deposits. Shares of Alden State Bank common stock are not insured by the Federal Deposit Insurance Corporation (FDIC) or any other agency and are subject to investment risk, including the possible loss of principal. Shares of Alden State Bank common stock have not been approved or disapproved by the FDIC.
Shares of Alden State Bank common stock are subordinated to the claims of depositors and other creditors. The purchase of shares of Alden State Bank common stock is suitable only for investors of substantial financial means who have no need for liquidity of their investment and understand and can afford the high financial and other risks of investment in the bank including the risk of loss of their entire investment. Shares of Alden State Bank common stock may not be used as collateral to secure a loan from Alden State Bank.
Shares of Alden State Bank common stock have not been registered under the Securities Act of 1933, as amended, nor under the securities laws of the State of Michigan; and, no such registration is contemplated. No sale or transfer of shares of Alden State Bank common stock will be permitted except in accordance with the provisions of the Securities Act of 1933, as amended, and its rules and regulations, the Michigan Uniform Securities Act, and Alden State Bank’s governing documents.
Shares of Alden State Bank common stock are exposed to a number of substantial risk factors which include, but are not limited to: Credit Risk, Market Risk, Liquidity Risk, Operational Risk, Legal Risk, Competition Risk and Reputational Risk. Credit Risk arises from the potential that a borrower or counterparty will fail to perform and obligation. Market Risk is the risk to Alden State Bank’s financial condition resulting from adverse movements in market rates or prices, such as interest rates, equity prices, real estate values, etc. Liquidity Risk arises from the potential that Alden State Bank may become unable to meet its obligations as they come due because of an inability to liquidate assets or obtain funding. Operational Risk arises from the potential that inadequate information systems, operation problems, breaches in internal controls, fraud, or unforeseen catastrophes will result in unexpected losses. Legal Risk arises from the potential that unenforceable contracts, lawsuits, or adverse judgments can disrupt or otherwise negatively affect the operations or condition of Alden State Bank. Competition Risk is the potential that increased competition could cause a decline in Alden State Bank’s customer base and its revenues. Reputational Risk is the potential that adverse publicity could cause a decline in Alden State Bank’s customer base and its revenues.
