Bridge Bancorp would issue to the US Treasury approximately $15 million in senior preferred shares along with warrants
Bridge Bancorp, the parent company of The Bridgehampton National Bank, has received preliminary approval from the US Treasury Department to participate in its capital purchase programme.
As a participant in the capital purchase programme (CPP), Bridge Bancorp would issue to the US Treasury, approximately $15 million in senior preferred shares along with warrants to purchase approximately 115,000 shares of its common stock.
Kevin O’Connor, president and CEO of Bridge Bancorp, said: While we are pleased to have received preliminary Treasury Department approval, the decision to accept the CPP funds is still being evaluated by management and our board of directors. We are carefully considering the potential restrictions and commitments our participation may require, as well as the opportunities this capital would provide in terms of credit availability to our markets and growth.
The US Treasury recently created the capital purchase programme (CPP) which is part of the troubled assets relief programme to encourage qualifying U.S. financial institutions to increase the flow of financing to businesses and consumers, thereby restoring liquidity and stability to the U.S. financial system. Companies participating in the programme must adopt the Treasury Department’s standards for executive compensation and corporate governance, for the period during which Treasury holds equity issued under this programme. These standards generally apply to the chief executive officer, chief financial officer and the next three most highly compensated executive officers. The approval is subject to certain conditions and the execution of definitive agreements.