OAKLAND, Calif., June 07, 2022 (GLOBE NEWSWIRE)-Bay Community Bancorp, (OTC Pink: CBOBA) (the “Company”), announced today that it wholly owns its subsidiary, Community Bank of the Bay, (the “Bank”) a San Francisco Bay Area commercial bank and the first FDIC insured Community Development Financial Institution (“CDFI”) of California with full-service offices in Oakland, Danville and San Mateo, is completed a $ 119.4 million investment from the U.S. Treasury Department.
Treasury investments, made under the Emergency Capital Investment Program (“ECIP”), are in the form of non-cumulative Senior Perpetual Preferred Stock. For the first two years from the date of issue of Senior Perpetual Preferred Stock the dividend rate shall be zero percent (0%) per annum, and then the dividend payments will begin to accrue with the highest dividend level. which is two per cent (2%) and the The dividend may be reduced to half per cent (0.5%) based on the level of increased qualified lending undertaken by the Bank. On October 18, 2021, the Treasury announced that 204 credit unions, banks, and savings and loan holding companies had applied for a total investment of over $ 12.88 billion under the ECIP Program and that demand had exceeded available amount of $ 4.13 billion.
On December 14, 2021, at the annual Freedman’s Bank Forum in Washington, DC 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 (“MDI” ) and CDFI banks and credit unions to facilitate the recovery of small businesses, minority-owned businesses, and consumers, especially those in low-income and underserved communities that may be less affected by the economic effects of the COVID-19 pandemic. The Bank previously announced that it was only one of five banks and six credit unions in California to be approved by the U.S. Treasury for an ECIP investment.
“This capital, in the form of Tier 1 qualifying preferred stock, represents a real transformational opportunity for our Bank, our shareholders, our clients and the communities we serve,” said William E. Purcell, Chairman of Bay Community Bancorp. “Since the Great Financial Crisis, the Bank has raised capital four times to support our growth from under $ 85 million in total assets to now approaching $ 1 billion. Although each previous increase has been successful of capital, the process is disruptive and exhausting to shareholders.Performed properly, this new capital will support more than a billion dollars of asset growth and allow us to focus heavily on enhancement of shareholder value as we build our successful community banking business model. “
“We are particularly pleased that our ECIP application and lending plan, which has fully achieved a more than ten year record of delivering both financial performance and community impact, has secured the full investment possible under the guidelines of ECIP, even if the program is oversubscribed more. than $ 4 billion, ”said William S. Keller, President and CEO. “This substantial increase in capital will result in expanded lending capacities and new services that better meet the needs of small and medium -sized Bay Area businesses, developers and real estate investors, service organizations and independent creators, especially those running and living in the traditional. underserved communities. ”
For more information on US Treasury ECIP investment please visit
https://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 businesses and professional service companies, as well as their owner-operators and non-profit 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 deposit institution, headquartered in Oakland, with full-service branches in Danville and San Mateo. It is the first FDIC-insured certified Community Development Financial Institution and one of only three operating in the Bay Area. The bank is recognized for establishing the Bay Area Green Fund to provide financing to sustainable businesses and projects and support environmentally responsible values. More bank information is available online at www.BankCBB.com.
Dependent Statements
This release may contain future statements, such as, among others, statements about plans, expectations and goals regarding growth and improvement. Statements looking forward are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the California real estate market and other factors beyond the control of the Bank. Such risks and uncertainties may result in results for subsequent interim periods or for the entire year that differ materially from the indicated. Readers should not place too much reliance on forward-looking statements, which reflect management’s perspective to date. The Bank does not undertake, and specifically disclaims, any obligation to update or amend any future statements, whether to disclose new information, future events, or otherwise, unless required by law.
Contacts: William S. Keller, President and CEO
510-433-5404
[email protected]
