OAKLAND, Calif., Sept. 21, 2022 (GLOBE NEWSWIRE) — Today Vice President Kamala Harris and U.S. Treasury Secretary Janet L. Yellen announced that the U.S. Treasury Department has completed $671 million in preferred stock investments in ten California-headquartered Community Development Financial Institutions (“CDFIs” or Minority Depository Institutions (“MDIs”) under the Emergency Capital Investment Program (“ECIP”) .
Bay Community Bancorp, (OTC Pink: CBOBA) (the “Company”), previously announced that its wholly owned subsidiary, Community Bank of the Bay, (the “Bank”), a commercial bank in the Bay Area of San Francisco and California’s premier FDIC insurer CDFI, with full-service offices in Oakland, Danville, and San Mateo, completed a $119.4 million investment from the U.S. Treasury Department on June 7, 2022.
The Company’s $119.4 million investment by the US Treasury Department was in the form of perpetual non-cumulative first preferred stock. 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.
“President Biden and I are fighting to build a nation in which every person, regardless of their starting point, has the opportunity to succeed and prosper. Community banks are essential to that goal,” said the vice president. Kamala Harris “Small businesses, nonprofits, entrepreneurs, and community organizations use ECIP funds to create opportunity and prosperity, not just for their community, but for our nation.”
“These critical funds provide an opportunity for underserved communities across the country, helping them get back on their feet after the pandemic and building their resilience to future shocks,” said Treasury Secretary Janet L. Yellen. “Today’s announcement is an important step towards expanding access to capital and services to rebuild and fuel long-term economic growth.
For more information on the US Treasury’s ECIP investment announcement, please visit:
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.
William S. Keller, President and CEO