Treaty Oak Bancorp, Inc. Announces Receipt of TARP Funds
2009-01-16 22:49:01 -
Treaty Oak Bancorp, Inc. ("Treaty Oak" or the "Company") announced today that it has received $3.268 million as an approved participant in the U.S. Treasury Department's TARP Capital Purchase Program. The Company issued 3,268 shares of Series B preferred stock and 163 shares of Series C preferred stock upon exercise of warrants by the U.S. Treasury. Proceeds from the stock sale will be used for additional capital contribution to Treaty Oak's wholly owned subsidiary Treaty Oak Bank.
The TARP Capital Purchase Program, created by the U.S. Treasury, is a voluntary program in which selected, healthy financial institutions were encouraged to participate. Such participation is intended to support the economic development of communities in which participating banks operate, thereby supporting the economic well being of local, regional and national markets.
Jeffrey L. Nash, President and Chief Executive Officer of Treaty Oak Bancorp and Treaty Oak Bank, said, "We are very pleased the Treasury Department determined our organization an attractive investment opportunity. Our bank continues to grow requiring additional capital. We had not initially anticipated participating in the CPP Program but given our appetite for capital and the attractive terms of this issuance it was an easy decision for our board of directors when Treasury informed us they had selected our bank." The Series B preferred stock will pay a 5% dividend for the first five years it remains outstanding, thereafter increasing to 9%.
Treaty Oak Bank was well capitalized as measured by all regulatory guidelines prior to the securities sale. "I believe the strength of our balance sheet and the quality of our loan portfolio were factors in Treasury's selection of Treaty Oak to participate in the CPP Program," Nash added. "With many banks still awaiting word on their CPP applications, we're fortunate to conclude this transaction this early in the process," Nash concluded.
About Treaty Oak Bancorp
Treaty Oak Bancorp, Inc. (TOAK) is the privately held holding company parent of Treaty Oak Bank, a community bank with $135 million in total assets located at 101 Westlake Drive at Bee Caves Road in West Lake Hills (Austin), Texas. The Bank has branches in Marble Falls and Texline, Texas as well as the Barton Creek Estates community of southwest Austin. The holding company and bank were organized in the Austin area, where more than 90 percent of its shareholders reside.
Cautionary Statement Regarding Forward-Looking Statements
Statements made in the press release, other than those containing historical information, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Such statements include information about possible or assumed future results of our operations. When we use any of the words "expect," "hope," "anticipate," or similar expressions, we are making forward-looking statements. Many possible events or factors can create risks and uncertainties that may cause results to differ materially from those set forth in these statements. The Company cautions readers that results and events subject to forward-looking statements could differ materially from those in the forward-looking statements.
Treaty Oak Bancorp, Inc., Austin
Jeffrey L. Nash, 512-617-3600
President & CEO
or
Coralie S. Pledger, 512-617-3600
Chief Financial Officer
