Intervest Bancshares Corporation Receives Preliminary Approval for $25 Million Investment under U.S. Treasury’s TARP Program
December 12 2008 - 10:10AM
Business Wire
Intervest Bancshares Corporation (NASDAQ-GS: IBCA) (the "Company")
announced today that it has received preliminary approval for a $25
million investment from the U.S. Treasury Department under the TARP
Capital Purchase Program. The TARP Capital Purchase Program is a
voluntary program designed to provide capital for healthy banks and
improve the flow of funds from banks to their customers. The terms
of participation are standardized across the industry. Under the
program, the Company will issue perpetual preferred stock to the
U.S. Treasury Department that qualifies as Tier 1 Capital. The
stock will carry a 5% dividend payable for each of the first five
years of the investment, and 9% thereafter, unless the Company
redeems the preferred shares earlier. In addition, as part of the
requirements of the program, the Company will issue to the U.S.
Treasury Department a warrant to purchase up to $3.75 million of
the Company's Class A Common Stock at any anytime for a period of
up to ten years at an exercise price per share to be determined
when the transaction closes. The exercise price will be based on a
20 day trailing average of the Company's Class A Common Stock.
Intervest Bancshares Corporation is a financial holding company.
Its operating subsidiaries are: Intervest National Bank, a
nationally chartered commercial bank that has its headquarters and
full-service banking office at One Rockefeller Plaza, in New York
City, and a total of six full-service banking offices in Clearwater
and Gulfport, Florida; and Intervest Mortgage Corporation, a
mortgage investment company. Intervest National Bank maintains
capital ratios in excess of the regulatory requirements to be
designated as a well-capitalized institution. Intervest Bancshares
Corporation's Class A Common Stock is listed on the NASDAQ Global
Select Market: Trading Symbol IBCA. This press release may contain
forward-looking information. Except for historical information, the
matters discussed herein are subject to certain risks and
uncertainties that may affect the Company's actual results of
operations. The following important factors, among others, could
cause actual results to differ materially from those set forth in
forward looking statements: changes in general economic conditions
and real estate values in the Company's market areas; changes in
policies by regulatory agencies; fluctuations in interest rates;
demand for loans and deposits; and competition. Reference is made
to the Company's filings with the SEC for further discussion of
risks and uncertainties regarding the Company's business.
Historical results are not necessarily indicative of the future
prospects of the Company.
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