Siuslaw Financial Group is giving a special dividend to its shareholders to be paid before the end of the year to beat an expected tax increase.
CEO Johan Mehlum said the bank’s board decided to pay the special dividend of 20 cents per share to common shareholders and 21 cents to preferred shareholders because of the bank’s strong financial position and consistent earnings. The dividend is equal to the total of the past four quarterly dividends.
And the board decided to pay the special dividend before the end of the year “in anticipation of the possible increase in the present 15 percent tax rate on corporate dividends. … to a rate of up to 39.6 percent under the Obama plan,” bank officials said in a written statement. “It was also a consideration that an additional tax of 3.8 percent could be levied on investment income for upper-income households starting in January 2013.”
Read more at The Register-Guard.