OAKLAND, Calif., Sept. 21, 2022 (GLOBE NEWSWIRE) -- Today, Vice President Kamala Harris and US Treasury Secretary Janet L. Yellen announced that the US Treasury Department completed $671 million in preferred stock investments in ten Community Development Financial Institutions ("CDFI") or Minority Depository Institutions ("MDI") headquartered in California under the Emergency Capital Investment Program ("ECIP").
Bay Community Bancorp, CBOBA (the "Company"), previously 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 CDFI with full-service offices in Oakland, Danville and San Mateo, completed a $119.4 million investment from the US Treasury Department on June 7, 2022.
The Company's $119.4 million investment from the US Treasury Department was 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.
"President Biden and I are fighting to build a nation in which every person, no matter where they start, has an opportunity to succeed and thrive. Community banks are essential to that goal," said Vice President Kamala Harris. "Small businesses, non-profits, entrepreneurs, and community organizations are using the ECIP funds to create opportunity and prosperity, not only for their community, but for our nation."
"These essential funds provide opportunity to underserved communities across the country, helping them to regain their footing following the pandemic and strengthening their resilience against future shocks," said Secretary of the Treasury Janet L. Yellen. "Today's announcement is a significant step toward expanding access to the capital and services to rebuild and fuel long-term economic growth."
For additional information on the US Treasury's ECIP investment announcement please visit:
About Bay Community Bancorp and Community Bank of the Bay
Bay Community Bancorp 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.
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.
William S. Keller, President & CEO
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.