KINSTON, N.C.--(Business Wire)--
the little bank (OTCBB: LTLB) (the "Bank") announced it has completed the
issuance and sale of $7.5 million in preferred stock as part of the U.S.
Department of the Treasury`s Capital Purchase Program ("TCPP").The little bank
closed on these funds on December 23, 2008.The TCPP is designed to attract broad
participation from healthy banking institutions to help stabilize the financial
system and increase lending for the benefit of the U.S. economy.
"This additional capital will give us the capacity to grow our loan portfolio
while maintaining healthy capital ratios during this difficult economic cycle,"
said Vincent R. Jones, CEO of the little bank.
Jones added, "As a local community bank, we are very excited about the
opportunity to deploy new capital on behalf of our communities and
customers."Jones said participation in the program makes economic sense as this
capital is attractively priced relative to other sources.The capital gives the
Bank additional flexibility by allowing for $75-$100 million in new loan growth
over the next several years.After closing on this new capital, the little bank`s
total risk based capital ratio is over 13%, well above the regulatory level for
well capitalized banks.
As a TCPP participant, the little bank issued $7.5 million in preferred stock,
on which the Bank will pay non-cumulative dividends on a quarterly basis.The
Bank will pay dividends at a rate of 5% per annum until the fifth anniversary
when the rate increases to 9% per annum.The stock carries no voting rights and
may be repaid at any time during the first three years using the proceeds from a
common stock offering or another preferred stock issuance.The terms and
conditions of the transaction and the preferred stock will conform to those
provided by the U.S. Treasury.A summary of the Capital Purchase Program can be
found on the Treasury`s website at http://www.ustreas.gov/initiatives/eesa.
The little bank is headquartered in Kinston, North Carolina and currently serves
the Lenoir, Wayne, Onslow, Pitt, and Craven county markets.The Bank prides
itself on the special care with which it serves its customers.The Bank`s website
is www.thelittlebank.com.The little bank stock can be found on the
Over-the-Counter Electronic Bulletin Board trading under the symbol LTLB.
This press release includes certain forward-looking statements in reliance on
the "safe-harbor" provisions of The Private Securities Litigation Reform Act of
1995.Any such forward-looking statements are subject to a number of risks and
uncertainties.Actual results may differ materially from those anticipated in any
such forward-looking statements.The Bank undertakes no obligation to update or
revise any such forward-looking statements.
the little bank
Doyle M. Thigpen, Chief Financial Officer
252-317-2804
Copyright Business Wire 2008
