Community 1st Bank (OTCBB:CFBN), today reported that it has received preliminary approval to participate in the U.S. Department of Treasury ("U.S. Treasury") Capital Purchase Program ("CPP").
Community 1st Bank ("the Bank") applied for and was approved for a $2,550,000 capital investment. At September 30, 2008, Community 1st Bank's Leverage Capital ratio was 16.2%, the Tier 1 Risk Based Capital ratio was 17.5%, and the Total Risk Based Capital ratio was 18.7%. The bank maintains a strong capital position, with capital well in excess of that required to be considered "well-capitalized" by regulatory standards.
The Bank's participation in the CPP is conditioned on its approval of the Securities Purchase Agreement and related documents, as well as approval from shareholders to amend the Company's Articles of Incorporation to authorize preferred stock, with the intent to issue preferred stock and preferred stock warrants to the U.S. Treasury. The Bank's Board of Directors is still assessing the merits of the CPP and has not yet made a final decision on the Bank's participation.
Mark A. Lund, President and Chief Executive Officer, commented, "The combination of our current growth rate, plus the impact of the impending opening of our Downtown Auburn office, suggests continued robust growth in 2009. This additional capital will support that growth and defer capital augmentation alternatives without ownership dilution to existing shareholders. This Treasury program appears to be sound and should assist strong, growing banks."
Community 1st Bank is headquartered in Roseville, California and operates full service banking offices in both Roseville and Auburn. Community 1st Bank offers a wide range of business and consumer deposit products including remote deposit capture, health savings accounts, online banking, and cash management services. The Bank also offers a full complement of loan products, including commercial, consumer, and real estate loans. For more information about the Bank, visit the Bank's website at www.community1bank.com.
Forward-Looking Statements
Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, competitive pressure in the banking industry, balance sheet management, net interest margin variations, the ability to control costs and expenses, changes in the interest rate environment and financial policies of the United States government and general economic conditions. The Bank disclaims any obligation to update any such factors.