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Community Partners obtains preliminary approval to participate in CPP

With the inclusion of $9 million from the Treasury, Community Partners' total risk-based capital ratio would increase to 13.48%

Community Partners Bancorp has received preliminary approval to participate in the US Treasury Department’s capital purchase programme.

 

Under the capital purchase programme (CPP), Community Partners plans to sell the US Treasury $9 million in fixed rate cumulative perpetual preferred stock, along with warrants to purchase approximately $1.35 million in common stock. The transaction is expected to close in January 2009. Community Partners’ total risk-based capital ratio of 11.57% at September 30, 2008 exceeds the 10% threshold for a well-capitalised financial institution. With the inclusion of
$9 million in capital from the U.S. Treasury, Community Partners’ total risk-based capital ratio would increase to 13.48%, on a pro forma basis, at September 30, 2008.

 

Barry Davall, president and CEO of Community Partners, said: The additional capital will enhance our ability to meet the borrowing needs of our customers in Monmouth and Union counties where we are a leading source of community bank lending. Community Partners is pleased to have this opportunity to participate in the Treasury Department’s effort to provide additional lending capacity to support economic activity.

 

Community Partners Bancorp, headquartered in Middletown, NJ, was formed in 2006 and is the holding company for Two River Community Bank and The Town Bank. Community Partners Bancorp common stock is traded on the NASDAQ Capital Market under the symbol CPBC.