"Capital Bank is pleased to be one of the early community banks to be
selected for participation in this historic program which many believe is an
essential part of restoring the economy to its full potential. We see the
approval of Capital Bank's participation in this program as a recognition of
its strength and financial health and believe it will enhance our efforts to
emerge from this environment as an even stronger financial institution.
Capital Bank intends to use this capital injection to expand lending in the
communities that we serve. We expect that the injection of capital under the
program will allow Capital Bank to expand our loan portfolio by approximately
Under the TCPP, the U.S. Treasury Department will purchase 42,900 shares
of senior preferred stock which will pay a dividend of 5% for the first five
years and 9% thereafter. The Treasury will also receive warrants to purchase
Capital Bank common stock with an aggregate market value of
Capital Bank Corporation, headquartered in
Information in this press release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, the risks of changes in interest rates, and the effects of competition. Additional factors that could cause actual results to differ materially are discussed in Capital Bank Corporation's filings with the Securities and Exchange Commission, including without limitation its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. Capital Bank Corporation does not undertake a duty to update any forward-looking statements in this press release.
SOURCE Capital Bank Corporation