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Community Bank of the Bay Receives $1.747 Million of New Capital Under U.S. Department of Treasury?s Capital Purchase Program

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  Published in Business and Finance on Thursday, January 22nd 2009 at 6:26 GMT, Last Modified on 2009-01-22 06:27:24 by Market Wire
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OAKLAND, Calif.--([ BUSINESS WIRE ])--Community Bank of the Bay (OTCBB:CBYAA) announces that it has raised $1.747 million in new capital as a participant in the U.S. Department of the Treasury's TARP Capital Repurchase Program.

"This capital infusion will provide the expanded capital base for us to increase our ability to meet the needs of our customers and the communities we serve," stated Brian Garrett, president and chief executive officer. "Additionally we believe our shareholders will benefit from this additional capital which further enhances our already well-capitalized position and allow us to expand our market share in a sound manner."

The U.S. Treasury's Capital Purchase Program is a voluntary program designed to assist healthy institutions build their capital positions to support the U.S. economy by increasing the flow of financing to U.S. businesses and consumers. Under the program senior preferred stock is issued to the U. S. Department of Treasury. The preferred stock will pay a dividend for the first five years, after which the rate will increase to 9% if the preferred shares are not redeemed by the Company. Because Community Bank of the Bay is a designated Community Development Financial Institution, no warrants as with other banks, is required. A summary of the Capital Purchase program can be found on the Treasury's website at [ www.streas.gov/initiatives/eesa ].

Community Bank of the Bay (member FDIC) is located in downtown Oakland and is the home of the Bay Area Green Fund™ and the Oakland 1^st Fund™. Community Bank of the Bay serves the financial needs of a variety of commercial customers including businesses, professional service firms and non-profits. Information on the bank and its services is available online at [ www.communitybankbay.com ]