Bank of Oak Ridge has obtained preliminary approval of its application for the US Treasury Department to invest $7.7 million in the company’s preferred stock and warrants, as part of the government’s capital purchase plan.
Bank of Oak Ridge said the additional capital would allow the community bank to continue its growth strategy of providing commercial and consumer banking products to businesses and consumers.
Ron Black, president and CEO of Bank of Oak Ridge, said: We believe this investment represents a strong vote of confidence in Bank of Oak Ridge, and we are pleased to participate in the Treasury’s capital purchase program (CPP) to fortify the financial system and help support the nation’s economic recovery.
The US 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.
