March 9 - California-based Beach Business Bank (OTCBB: BBBC) has announced that on March 7, 2012, it entered into a third letter agreement with the United States Department of the Treasury to which the bank repurchased 1,500 of the remaining 3,000 shares of the fixed rate non-cumulative perpetual preferred stock, series A issued to the US Treasury. Previously, the bank had repurchased 1,500 shares on July 6, 2011, and 1,500 shares on Oct. 19, 2011, of the original 6,000 shares of the series A preferred stock that the bank had issued to the Treasury on Jan. 30, 2009, under the TARP Capital Purchase Program of the Emergency Economic Stabilization Act of 2008. The bank paid $1.5 million to repurchase the preferred shares along with the accrued dividend for the shares repurchased.
Following the repurchase, the U.S. Treasury will continue to own $1.5 million of the bank's fixed rate non-cumulative perpetual preferred stock, series A, as well as 300 shares of fixed rate non-cumulative perpetual preferred stock, series B. The bank will continue to pay dividends on the remaining shares of series A and series B preferred stock. The bank expects that the remaining shares of series A and series B preferred stock will be repurchased, subject to regulatory approval, in conjunction with the closing of the merger between Beach Business Bank and First PacTrust Bancorp Inc., which was approved by the bank's shareholders late last year and is expected to close in the second quarter of 2012.
"We are very pleased to announce our third partial repurchase of preferred stock. The bank remains profitable and well capitalized and hopes to complete its plan to repurchase all of the series A and series B preferred stock, subject to regulatory approval," commented James Gray, director and chairman of the bank.
Robert Franko, president and CEO, noted, "As each partial repurchase of TARP is subject to regulatory approval, we believe that their continued approval is recognition of the overall financial strength and strong capital position of the bank."
Beach Business Bank is headquartered in Manhattan Beach, Calif., and has offices in Long Beach, Torrance, and Orange County, California. The bank is first and foremost a community business bank serving Southern California residents and businesses. The bank also has a division named The Doctors Bank, which serves physicians and dentists nationwide. In addition, Beach Business Bank provides loans to small businesses, focused around the SBA lending programs. For more information on the bank, please visit www.beachbusinessbank.com or call 866-862-3878.