Community Bank of the Bay Receives $1.747 Million of New Capital Under U.S. Department of Treasury's Capital Purchase Program.OAKLAND, Calif. -- Community Bank of the Bay (OTCBB OTCBB See OTC Bulletin Board (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 Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. 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 Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. 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 Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. 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 FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). ) is located in downtown Oakland Downtown Oakland is the central business district in Oakland, California. This part of town is bounded, depending on the definition used by either Interstate 880 or the Oakland Estuary on the southwest, Interstate 980 on the northwest, Grand Avenue on the northeast and Lake Merritt and is the home of the Bay Area Green Fund[TM] and the Oakland 1st Fund[TM]. 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 |
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