Business & Finance
Business and Finance
Business and Finance
Mon, December 22, 2008 NCAL Bancorp Receives $10 Million in New Capital Through the U.S. Treasury's TARP Capital Purchase Program
LOS ANGELES--([ BUSINESS WIRE ])--NCAL Bancorp California (OTCBB:NCAL), the parent company of National Bank of California, announced today that it had completed the sale of $10.0 million in shares of its Series A Fixed Rate Cumulative Perpetual Preferred Stock to the U.S. Department of the Treasury. The Treasury also received a warrant to purchase $500,000 of a second class of warrant preferred shares for nominal consideration. This warrant was immediately exercised. 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 10.92% at September 30, 2008, already substantially exceeding requirements for "well capitalized" banking institutions. After giving effect to the Treasury's investment in the company 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," said Barry W. Uzel, President and Chief Executive Officer of the Company and National Bank of California. "The Treasury has targeted investment capital for strong banking institutions like ours to support our growth and ability to serve our customers and communities."
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.
