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First Resource Bank sells $2.6 million in preferred stock to U.S. Treasury

First Resource Bank has issued 2,600 shares of series 2009A preferred stock and a warrant to purchase 130 shares of series 2009B preferred stock to the U.S. Department of the Treasury for gross proceeds of $2.6 million.

This sale was made pursuant to the Department of the Treasury’s capital purchase plan. The warrant was immediately exercised and 130 shares of series 2009B preferred stock were issued on January 30, 2009.

The series 2009A preferred stock bears an annual dividend rate of 5% for five years and 9% per year thereafter. The series 2009B preferred stock bears an annual dividend of 9% per year.

Glenn Marshall, president and CEO of First Resource Bank, said: We are pleased to receive this capital infusion from the Treasury which will enable us to continue lending to Main Street businesses and assist in the economic stabilisation of our region.

The U.S. Treasury’s capital purchase programme is a voluntary programme designed to assist healthy institutions build their capital positions to support the U.S. economy by increasing the flow of financing to the U.S. businesses and consumers. Under the programme, senior preferred stock is issued to the U.S. Department of Treasury. The preferred stock will pay a dividend for the first five years, after which the rate will increase to 9% if the preferred shares are not redeemed by the company.