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NCAL Bancorp Receives Preliminary Approval to Participate inTreasury's TARP Capital Purchase Program

^{Published on 2008-12-11 16:02:33 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--NCAL Bancorp California (OTCBB:NCAL), the parent company of National Bank of California, announced today that it has received preliminary approval from the U.S. Department of the Treasury to participate in its TARP Capital Purchase Program. The Treasury is expected to purchase $10 million of the Company's fixed rate perpetual preferred stock. The Treasury will also receive a warrant to purchase $500,000 of a second class of warrant preferred shares for nominal consideration in lieu of a warrant to purchase shares of the Company common stock. The Company intends to close the transaction no later than January 2009. The proceeds of the investment will be used to increase the Company's capital position, and to fund continued loan growth and business development by National Bank of California.

NCAL Bancorp's Tier 1 capital ratio was approximately 10.92 % at September 30, 2008, already significantly exceeding requirements for "well capitalized" banking institutions. After giving effect to the Treasury's investment on a pro forma basis at September 30, 2008, the Company's Tier 1 capital ratio would be increased to approximately 13.1 %.

"NCAL Bancorp is pleased to have the opportunity to participate in the Treasury's TARP Capital Purchase Program, which provides reasonably priced capital to qualified banking institutions," said Barry W. Uzel, President and Chief Executive Officer of the Company and National Bank of California. "We will use this capital to support the expansion of our business lending activities to businesses in our communities and the growth of our banking franchise."

The closing of the transaction is subject to satisfaction of certain conditions and the execution of definitive agreements, forms of which are or will be made available on the Treasury's website.

NCAL Bancorp is a bank holding company with one banking subsidiary, National Bank of California, a full-service commercial bank and member of the FDIC. Regional locations are in Los Angeles, Costa Mesa, Sherman Oaks, Glendale and Westlake Village. Shares of the Company's common stock are traded on the Over-the-Counter Bulletin Board – stock symbol NCAL.

This release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements.