Attached files
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8-K - FORM 8-K - CENTRAL BANCORP INC /MA/ | b87906e8vk.htm |
EX-3.1 - EX-3.1 - CENTRAL BANCORP INC /MA/ | b87906exv3w1.htm |
EX-10.2 - EX-10.2 - CENTRAL BANCORP INC /MA/ | b87906exv10w2.htm |
EX-10.1 - EX-10.1 - CENTRAL BANCORP INC /MA/ | b87906exv10w1.htm |
Exhibit 99.1
News Release
FOR IMMEDIATE RELEASE
Contact: | Paul S. Feeley Senior Vice President, Treasurer and Chief Financial Officer (617) 628-4000 |
Central Bancorp Receives $10.0 Million of Capital from Small Business
Lending Fund, Redeems Preferred Stock Issued
Lending Fund, Redeems Preferred Stock Issued
Under the U.S. Treasurys Capital Purchase Program
SOMERVILLE, MASSACHUSETTS, August 25, 2011 Central Bancorp, Inc. (NASDAQ Global Market:
CEBK) (the Company) today announced that the U.S. Department of Treasury has invested $10.0
million in the Companys preferred stock under the Small Business Lending Fund (the SBLF). The
SBLF is a voluntary program intended to encourage small business lending by providing capital to
qualified community banks at favorable rates. The initial interest rate on the SBLF funds will be
5% and may be decreased to as low as 1% if the Company experiences specific growth rates in its
small business lending portfolio.
With the proceeds from this investment, the Company has redeemed all $10.0 million of the preferred
stock that it sold to the Treasury under the TARP Capital Purchase Program on December 5, 2008. In
conjunction with the Companys participation in the TARP Capital Purchase Program, the Treasury
also received a warrant to purchase up to 234,742 shares of the Companys common stock at an
exercise price of $6.39 per share. The Company is currently evaluating whether to seek agreement
with the Treasury to repurchase the warrant at its fair market value. However, there can be no
assurance that the Company will reach an agreement with the Treasury as to a fair market value of
the warrant, or that the Company will repurchase the warrant.
Central Bancorp, Inc. is the holding company for Central Bank, whose legal name is Central
Co-operative Bank, a Massachusetts-chartered co-operative bank operating nine full-service banking
offices, a limited service high school branch in suburban Boston and a standalone 24-hour automated
teller machine in Somerville.
This press release may contain certain forward-looking statements, which are based on managements
current expectations regarding economic, legislative and regulatory issues that may impact the
Companys earnings in future periods. Factors that could cause future results to vary materially
from current management expectations include, but are not limited to, general economic conditions,
changes in interest rates, deposit flows, changes in the growth of the Companys small business
lending portfolio, real estate values and competition, changes in accounting principles, policies
or guidelines, changes in legislation or regulation, and other economic, competitive, governmental,
regulatory and technological factors affecting the Companys operations, pricing, products and
services.