WEST SACRAMENTO, Calif.--(BUSINESS WIRE)--Community Business Bank announced today that it has successfully repurchased and retired 100% of its class A and B preferred stock. The preferred stock was originally issued in February 2009 to the United States Department of the Treasury. The stock was subsequently sold at auction to Investment Bankers in November 2012 as part of the Treasury’s exit from the TARP program.
John DiMichele, CEO stated, “The $4,175,000 of preferred stock was repurchased at a 10% discount from the Investment Bankers resulting in a gain to Community Business Bank’s surplus capital account of $417,500. The repurchase of stock was self-funded by the Bank based on its strong earnings performance over the last 3 years and the 100% exercising of expiring stock options in late 2015, which provided $2,793,200 in additional common shareholder equity.”
DiMichele continued, “Although the result is a reduction in our capital levels, the Bank’s ratios remain well above the minimum levels to be considered a well capitalized institution. These ratios will continue to be strengthened through the posting of strong earnings and having no non-performing assets on the balance sheet over the last three years.”
Community Business Bank is a top performing financial institution serving small businesses, non-profit organizations, professionals and agricultural clients. The Bank was formed in November 2005 as a locally owned community business bank serving the greater Yolo, Solano, Sacramento, San Joaquin and contiguous counties. The Bank has enjoyed tremendous success by combining personalized customer service with quality products, competitive pricing and innovative technological platforms. The Bank has grown to over $260 million in assets. Community Business Bank stock is traded under the symbol CBBC. For more information about the Bank, visit www.commuitybizbank.com.
Forward Looking Statement
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, the Bank achieving its projected efficiency ratio and addressing its preferred stock. These forward-looking statements involve known and unknown risks, uncertainties and factors such as: (1) the impact of changes in interest rates, (2) fluctuation in economic conditions and continued deterioration of the real estate market, (3) competition in the Company's defined market, (4) the Company's ability to sustain its internal growth rate and to preserve its earning assets quality, and (5) government regulations. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct.