The Private Bank of the Peninsula, a subsidiary of Peninsula Bank Holding Company, has announced that the bank has completed the sale of $6 million of preferred stock and common stock warrants to the U.S. Treasury Department under the troubled asset relief programme’s capital purchase programme.
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.
Mark Mordell, chairman of the board of directors of Peninsula Bank Holding, said: We are pleased that The Private Bank of the Peninsula qualified to participate in the troubled asset relief programme’s CPP. This capital infusion will further strengthen our balance sheet and is in the best long-term interests of our shareholders and clients.
