Business & Finance
Business and Finance
Business and Finance
Mon, February 9, 2009
Fri, February 6, 2009 Alaska Pacific Bancshares, Inc. Receives $4.8 Million Investment from the U.S. Treasury?s Capital Purchase Program
JUNEAU, Alaska--([ BUSINESS WIRE ])--Alaska Pacific Bancshares, Inc. ("Company") (OTCBB:AKPB), the parent company of Alaska Pacific Bank ("Bank"), today announced that it has received $4.8 million from the U.S. Treasury Department as a part of the Treasury's Capital Purchase Program. This funding marks the Company's successful completion of the sale of $4.8 million in senior preferred stock, with a related warrant to purchase up to $717,150 in common stock to the U.S. Treasury. The transaction is part of the Treasury's program to encourage qualified financial institutions to build capital to increase the flow of financing to businesses and consumers and to support the U.S. economy.
"We appreciate and support the efforts of the U.S. Treasury Department to stabilize financial markets and increase the flow of credit to deserving borrowers," said Craig E. Dahl, President and CEO. "We are pleased that we have been selected to participate in this voluntary program, which is an important recognition of the strength and financial health of our Company. The additional capital will enhance our capacity to support the communities we serve through expanded lending activities and economic development. We believe that participation in this program should be beneficial for the employees, customers and shareholders of the Company."
The preferred stock will pay a 5% dividend for the first five years, after which the rate will increase to 9% if the preferred shares are not redeemed by the Company. The terms and conditions of the transaction and the preferred stock conform to those provided by the U.S. Treasury. A summary of the Capital Purchase Program can be found on the Treasury's web site at [ www.ustreas.gov/initiatives/eesa ]. In addition to the preferred shares, the Treasury received a warrant to purchase 175,772 shares of the Company's common stock at a price of $4.08 per share at any time during the next ten years. The details of this transaction, the agreements and other documents will be filed with the Securities and Exchange Commission (SEC) on Form 8-K.
