California Bank of Commerce has completed a $4 million preferred capital raise after approval by the US Treasury to participate in its capital purchase program.
The Treasury’s capital purchase program (CPP) is a voluntary program designed to attract participation by healthy banking institutions whose continued participation in the economy is vital to America’s recovery.
John Rossell, CEO of California Bank of Commerce, said: California Bank of Commerce’s business-focused strategy is ideally suited to the Treasury’s strategy. We don’t need capital today, but this bank is committed to growth and, over time, growth always requires capital. We made $80 million in new loans last year. With this new capital in place, we are positioned to push boldly ahead, despite today’s difficult capital markets.
The capital purchase program (CPP), created by the U.S. Treasury, is a voluntary program in which selected, healthy financial institutions are encouraged to participate. Approved use of the funds includes providing credit to qualified borrowers, either as companies or individuals, among other things. Such participation is intended to support the economic development of the community and thereby restore the health of the local and national economy.
