California Oaks State Bank Receives Preliminary Approval From U.S. Treasury's Capital Purchase Program
THOUSAND OAKS, CA--(Marketwire - December 19, 2008) - California Oaks State Bank (OTCBB: COSB)
announced today it has received preliminary approval from the U.S. Treasury
Department as part of the government's Capital Purchase Program for
approximately a $3.3 million investment.
The investment represents 3% of California Oaks State Bank's risk-weighted
assets as of September 30, 2008. Based on the capital ratios as of
September 30, 2008, the capital infusion would increase the Bank's leverage
ratio from 12.5% to 15.1%, the Bank's Tier 1 capital to risk-weighted
assets ratio from 13.6% to 16.5% and the Bank's total capital to
risk-weighted assets ratio from 14.7% to 17.8%.
In addition, the Bank announced today its continued participation in the
Federal Deposit Insurance Corporation (FDIC) Transaction Account Guarantee
Program (TAGP), which provides unlimited insurance coverage of all funds in
non-interest bearing transaction accounts.
The transaction account guarantee program feature of the FDIC Temporary
Liquidity Guarantee Program provides unlimited FDIC insurance of 100
percent of funds deposited in non-interest bearing transaction accounts,
such as personal and business non-interest checking and NOW accounts
bearing interest rates of less than 0.50 basis points, through December 31,
2009. Certain types of attorney trust accounts are also included in this
program. The coverage under the TAGP is separate from coverage available
under the FDIC's general deposit insurance rules, which currently insure
accounts up to $250,000.
John Nerland, the Bank's President and CEO noted that the increase in
capital would enhance the Bank's current well-capitalized position based on
regulatory standards and the Bank would benefit from its transaction
account customers having the added security of unlimited FDIC insurance on
all their standard checking deposits.
The U.S. Treasury announced the voluntary Capital Purchase Program on
October 14 to encourage U.S. financial institutions to build capital to
increase the flow of financing to U.S. businesses and consumers and to
support the U.S. economy. Information about the Capital Purchase Program,
including the Treasury's term sheet, is available at the Treasury's Web
site at www.ustreas.gov.
About California Oaks State Bank
California Oaks State Bank (OTCBB: COSB) with $128 million in assets is
located in Ventura County with offices in Thousand Oaks and Simi Valley and
a Loan Production Office located in Walnut Creek, Calif. California Oaks
State Bank was founded in 1998 as a locally owned community business bank.
The bank provides a full range of products and services including
commercial and real estate loans as well as cash management products and
deposit services. Its unique capability in diversified lending in addition
to its customary community bank credit products help its customers meets
their cash management goals. For additional information, visit
www.caloaks.com.
Certain matters discussed in this press release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995, and are subject to the safe harbors created by the act. These
forward-looking statements refer to the Company's current expectations
regarding future operating results, and growth in loans, deposits, and
assets. These forward-looking statements are subject to certain risks and
uncertainties that could cause the actual results, performance, or
achievements to differ materially from those expressed, suggested, or
implied by the forward-looking statements. These risks and uncertainties
include, but are not limited to (1) the impact of changes in interest
rates, a decline in economic conditions, and increased competition by
financial service providers on the Company's results of operation, (2) the
Company's ability to continue its internal growth rate, (3) the Company's
ability to build net interest spread, (4) the quality of the Company's
earning assets, and (5) governmental regulations.
Contact Information: Media Contact
John Nerland
President & CEO
(805) 413-0111