Limestone Bancorp Announces Termination of Tax Benefits Preservation Plan

Rhea-AI Summary

Limestone Bancorp, Inc. (NASDAQ: LMST) has announced the termination of its Tax Benefit Preservation Plan, initially established in 2015 to safeguard the company's tax assets. This move aligns with the recent merger agreement with Peoples Bancorp, Inc. (NASDAQ: PEBO), leading to an accelerated expiration of the plan as of October 24, 2022. Shareholders are not required to take any action regarding the termination. However, the company's Articles of Incorporation still enforce restrictions to protect its tax assets.

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Limestone Bancorp, Inc. (NASDAQ: LMST) (the “Company”), parent company of Limestone Bank, Inc. (the “Bank”), today announced that its Board of Directors unanimously approved the termination of the Company’s Tax Benefit Preservation Plan, which was originally put in place in 2015 and designed to preserve the benefits of the Company’s substantial tax assets.

As separately announced, the Company has entered into a merger agreement with Peoples Bancorp, Inc. (NASDAQ: PEBO). In conjunction with that merger agreement, the Tax Benefit Preservation Plan was amended to accelerate its expiration date to October 24, 2022, effectively terminating the plan as of that date.

Shareholders are not required, nor do they need to take any action because of the termination of this plan.

Restrictions on transfer designed to protect the Company’s tax assets remain in effect under the Company’s Articles of Incorporation, as approved by shareholders.

About Limestone Bancorp, Inc.

Limestone Bancorp, Inc. (NASDAQ: LMST) is a Louisville, Kentucky-based bank holding company which operates banking centers in 14 counties through its wholly-owned subsidiary Limestone Bank. The Bank’s markets include metropolitan Louisville in Jefferson County and the surrounding counties of Bullitt and Henry and extend south along the Interstate 65 corridor. The Bank serves south central, southern, and western Kentucky from banking centers in Barren, Butler, Daviess, Edmonson, Green, Hardin, Hart, Ohio, and Warren counties. The Bank also has banking centers in Lexington, Kentucky, the second largest city in the state, and Frankfort, Kentucky, the state capital. Limestone Bank is a traditional community bank with a wide range of personal and business banking products and services.

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John T. Taylor

Chief Executive Officer

(502) 499-4800

Source: Limestone Bancorp, Inc.

FAQ

What did Limestone Bancorp announce regarding its Tax Benefit Preservation Plan?

Limestone Bancorp announced the termination of its Tax Benefit Preservation Plan, which was originally designed to preserve the company's tax assets.

When was the Tax Benefit Preservation Plan terminated?

The Tax Benefit Preservation Plan was effectively terminated on October 24, 2022.

What company is Limestone Bancorp merging with?

Limestone Bancorp is entering a merger agreement with Peoples Bancorp, Inc.

Do shareholders need to take any action regarding the termination of the Tax Benefit Preservation Plan?

No, shareholders are not required to take any action due to the termination of this plan.

What restrictions remain in effect after the termination of the Tax Benefit Preservation Plan?

Restrictions on transfer designed to protect the company's tax assets remain in effect under the company’s Articles of Incorporation.