Community 1st Bank receives more than $2mln TARP funds

Community 1st Bank announced today that it has received $2,550,000 through the U.S. Treasury Department's TARP Capital Purchase Program, aimed at supporting economic development of the community. The fund was used to issue 2,550 shares of Series A preferred stock and a related warrant for 128 shares of Series B preferred stock. The latter represents 5% of the Series A preferred stock amount or $127,500 to the U.S. Treasury.

Mark A. Lund, President and Chief Executive Officer of Community 1st Bank, commenting on the usage of the amount received said, "We expect to profitably leverage this capital infusion through lending and community based investments, fulfilling our mission as an outstanding corporate citizen.”

According to the bank’s plans, the Series A preferred stock issued will pay a 5% dividend for the first 5 years, with the following increase of 9%, provided the Bank does not redeem the preferred shares. On the other hand, the Series B preferred stock will pay a 9% dividend. These preferred shares have been declared not to carry voting rights, except in certain limited circumstances. The preferred shares and warrants have been issued only to the U.S. Treasury. Terms and conditions of the transaction will have to conform to those provided by the U.S. Treasury.

Community 1st Bank is headquartered in Roseville, and it offers a wide range of business and consumer deposit products.