January 09, 2009
Congaree Bancshares Receives $3.2Million Investment From U.S. Treasury
Congaree Bancshares, Inc. the holding company for Congaree State Bank, announced today, that on January 9, 2009, it received a $3,285,000 investment from the U.S. Department of the Treasury as part of the federal government’s Capital Purchase Program. In return for the investment, Congaree Bancshares sold to the Treasury 3,285 shares of the Company’s non-voting preferred stock, series A, and a ten-year warrant to purchase 164 shares of the Company’s non-voting preferred stock, series B.
“We have been well capitalized since the opening of Congaree State Bank, and we made a strategic decision to participate in the program. The Capital Purchase Program is designed to provide additional capital to healthy, well-managed financial institutions,”comments Hank Ray, President/Chief Executive Officer of Congaree State Bank.
The series A preferred stock purchased by the Treasury will accrue a dividend of 5%per year for the first five years and 9% per year thereafter. Immediately following the issuance of the series A preferred stock and the warrant, the Treasury exercised the warrant and received 164 shares of series B preferred stock, with a liquidation preference of $164,000. The series B preferred stock will accrue a dividend of 9%per year.
Ray adds,“This investment will strengthen our capital position and allow us to increase our ability to finance attractive lending opportunities.We believe that it is in the best interests of our institution to take advantage of this economic opportunity. By our gaining more capital, our community will benefit as well.”
Congaree State Bank offers checking and savings accounts, home equity line of credit services, loan and mortgage services and business banking. For more information on Congaree State Bank, visit congareestatebank.com.
Certain statements in this news release contain“forward-looking statements”within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as a downturn in the economy, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.
Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by our Company or any person that the future events, plans, or expectations contemplated by our Company will be achieved.We undertake no obligation to publicly
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