The bank issued 5,500 shares of series A preferred stock and a warrant for 275 shares of series B preferred stock
Valley Community Bank has received $5.5 million as an approved participant in the US Treasury Department’s troubled assets relief programme capital purchase programme.
The bank issued 5,500 shares of series A preferred stock and a related warrant for 275 shares of series B preferred stock, which represents 5% of the series A preferred stock amount or $275,000, to the U.S. Treasury.
The troubled assets relief programme (TARP) capital purchase programme, created by the U.S. Treasury, is a voluntary programme in which selected, healthy financial institutions were encouraged to participate. Such participation is intended to support the economic development of the community and thereby restore the health of the local and national economy.
Richard Loupe, president and CEO of Valley Community Bank, said: We are pleased that the Treasury has chosen to invest in our bank. The additional capital will enhance our ability to continue lending to our local communities.
The U.S. 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.