Community Bank of the Bay raises $119.4 million; The US Treasury invests in preferred stocks
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OAKLAND, Calif., June 07, 2022 (GLOBE NEWSWIRE) — Bay Community Bancorp, (OTC Pink: CBOBA) (the “Company”), today announced that its wholly-owned subsidiary, Community Bank of the Bay, (the “Bank”), a San Francisco Bay Area commercial bank and California’s first FDIC-insured Community Development Financial Institution (“CDFI”) with full-service offices in Oakland, Danville and San Mateo, completed an investment of $119.4 million from the US Treasury Department.
The Treasury investment, made under the Emergency Capital Investment Program (“ECIP”), is in the form of non-cumulative senior perpetual preferred shares. For the first two years from the date of issuance of the Perpetual First Preferred Shares, the dividend rate will be zero percent (0%) per annum, and thereafter dividend payments will begin to accrue. accrue with a maximum dividend rate of two percent (2%) and the dividend rate may be reduced to one-half percent (0.5%) depending on the level of increase in qualifying loans made by the Bank. On October 18, 2021, the Treasury announced that 204 credit unions, banks, and savings and loan holding companies had applied for total investments of more than $12.88 billion under the ECIP program and that the application exceeded the amount available by $4.13 billion.
On December 14, 2021, at the Freedman’s Bank Annual Forum in Washington, D.C., Treasury Secretary Janet L. Yellen and Vice President Kamala Harris announced that the U.S. Treasury would invest $8.7 billion in up to 186 Minority Depository Institutions (“MDIs”). and CDFI banks and credit unions to accelerate the recovery of small businesses, minority-owned businesses and consumers, especially those in low-income and underserved communities who may have been disproportionately impacted by the economic effects of the COVID-19 pandemic. The Bank previously announced that it was one of five California banks and six credit unions to be approved by the US Treasury for an ECIP investment.
“This capital, in the form of qualifying Tier 1 preferred stock, presents a truly transformative opportunity for our Bank, our shareholders, our customers and the communities we serve,” said William E. Purcell, Chairman of Bay Community Bancorp. . Great Financial Crisis, the Bank raised capital four times to support our growth from less than $85 million in total assets to nearly $1 billion. Although each previous capital raise was successful, the process was cumbersome and dilutive for shareholders. Deployed correctly, this new capital can support over $1 billion in asset growth and allows us to focus intensely on enhancing shareholder value as we build on our banking business model. successful community.
“We are particularly pleased that our ECIP application and loan plan, which draws heavily on our more than ten years of financial performance and community impact experience, has earned the full investment possible under ECIP guidelines, even though the program was oversubscribed by more than $4 billion,” said William S. Keller, President and CEO. “This substantial capital increase will result in increased lending capabilities and new services that will better meet the needs of Bay Area small and medium-sized businesses, real estate developers and investors, service organizations and independent creators. , especially those who traditionally operate and reside in underserved communities.
For more information on the US Treasury ECIP investment, please visithttps://home.treasury.gov/policy-issues/coronavirus/assistance-for-small-businesses/emergency-capital-investment-program
About Bay Community Bancorp and Community Bank of the Bay
Bay Community Bancorp (OTCPink: CBOBA) is the parent company of Community Bank of the Bay, a San Francisco Bay Area commercial bank with full-service offices in Oakland, Danville and San Mateo. Community Bank of the Bay serves the financial needs of private businesses and professional services firms, as well as their owner-operators and nonprofit organizations throughout the San Francisco Bay Area. Community Bank of the Bay is a Member of the FDIC, an SBA Preferred Lender and a CDARS Depository Institution, headquartered in Oakland, with full-service branches in Danville and San Mateo. It is California’s first FDIC-certified community development financial institution and one of only three operating in the Bay Area. The bank is credited with establishing the Bay Area Green Fund to fund sustainable businesses and projects and support environmentally friendly values. Additional information about the bank is available online at www.BankCBB.com.
This release may contain forward-looking statements, such as, but not limited to, statements about plans, expectations and objectives for growth and improvement. Forward-looking statements are subject to risks and uncertainties. These risks and uncertainties may include, but are not limited to, interest rate fluctuations, inflation, government regulations and general economic conditions, including the California real estate market and other factors beyond the will of the Bank. These risks and uncertainties could cause results for subsequent interim periods or for the full year to differ materially from those those indicated. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. The Bank does not undertake, and expressly disclaims any obligation, to update or revise any forward-looking statement, whether to reflect new information, future events or otherwise, except as required by law.
Contacts: William S. Keller, President and CEO510-433-5404[email protected]
Source: Bay Community Bancorp