OAKLAND, Calif., June 07, 2022 (GLOBE NEWSWIRE) -- Bay Community Bancorp, (OTC Pink: CBOBA) (the “Company”), announced today 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 a $119.4 million investment from the US Treasury Department.
Treasury’s investment, made under the Emergency Capital Investment Program (“ECIP”), is in the form of non-cumulative Senior Perpetual Preferred Stock. For the first two years from the date of issuance of the Senior Perpetual Preferred Stock the dividend rate shall be zero percent (0%) per annum, and thereafter dividend payments begin accruing with a maximum dividend rate of two percent (2%) and the dividend rate may be reduced to one half percent (0.5%) based on the level of increased qualified lending undertaken by the Bank. On October 18, 2021 Treasury announced that 204 credit unions, banks, and savings and loan holding companies applied for total investments of over $12.88 billion under the ECIP Program and that the demand exceeded the amount available by $4.13 billion.
On December 14, 2021, at the annual Freedman’s Bank Forum in Washington, D.C. Secretary of the Treasury Janet L. Yellen and Vice President Kamala Harris announced that the US Treasury would invest $8.7 billion in up to 186 Minority Depository Institutions (“MDI”) 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 that may have been disproportionately impacted by the economic effects of the COVID-19 pandemic. The Bank previously announced that it was one of only five banks and six credit unions in California to be approved by the US Treasury for an ECIP investment.
“This capital, in the form of Tier 1 qualifying preferred stock, presents a truly transformative opportunity for our Bank, our shareholders, our clients and the communities we serve,” stated 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. While each prior capital raise was successful, the process was distracting and dilutive to shareholders. Deployed properly, this new capital can support well over a billion dollars of asset growth and allows us to focus intently on enhancing shareholder value as we build on our successful community bank business model.”
“We are especially pleased that our ECIP application and lending plan, which drew heavily on our more than ten-year record of delivering both financial performance and community impact, merited the full investment possible under ECIP guidelines, even as the program was oversubscribed by 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 the Bay Area’s small and medium sized businesses, real estate developers and investors, service organizations and independent creators, especially those that operate and reside in traditionally underserved communities.”
For additional information on the US Treasury’s 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 closely held businesses and professional service firms, 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 depository institution, headquartered in Oakland, with full-service branches in Danville and San Mateo. It is California’s 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 supports environmentally responsible values. Additional information on the bank is available online at www.BankCBB.com.
Forward-Looking Statements
This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements 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 real estate market in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Bank does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether to reflect new information, future events, or otherwise, except as required by law.
Contacts: William S. Keller, President & CEO
510-433-5404
wkeller@BankCBB.com
