SOURCE: Promerica Bank

Promerica Bank

September 28, 2011 17:01 ET

PROMERICA BANK Receives Funding from the U.S. Treasury's Small Business Lending Fund Program

LOS ANGELES, CA--(Marketwire - Sep 28, 2011) - Promérica Bank (OTCQB: PMRA) (PINKSHEETS: PMRA), today announced that it received a capital investment of $3.8 million in the Bank's preferred stock from the U.S. Treasury Department's Small Business Lending Fund ("the SBLF"). The SBLF was created by the U.S. Treasury to promote small business lending by providing capital to qualified commercial banks.

"The Bank's large capital base and strong ties to the Latino community have helped it grow when many community banks have had to curtail or even shrink their lending portfolios. We expect this additional capital will further support our ongoing commitment to providing credit to the business communities which we serve," said John H. Quinn, CEO and President. "Due to our success in growing our loan portfolio over the past several years we have qualified for highly favorable terms under the SBLF, as demonstrated by an initial dividend rate of 1%. This program will provide significant benefits to our customers, shareholders and the Southern California small business market over the coming years."

"We are pleased that the U.S. Treasury chose Promérica Bank to partner with in this important economic stimulus program. Nearly 40% of the banks applying for funds did not meet the U.S. Treasury's stringent selection standards," added Maria Contreras-Sweet, Executive Chairwoman. "Our participation in SBLF positions Promérica for future growth with strengthened capital ratios and a strategic market advantage to provide small businesses with more commercial loans at competitive rates. We are confident that this initiative will further our mission of building jobs in the community."

Promérica Bank provides commercial banking services to small and medium size businesses in the greater Los Angeles area, including a high proportion of non-profit organizations and Latino- and women-owned businesses. State-of-the-art electronic banking permits full service availability wherever its customers are located, and customized, attentive service support produces a steady flow of compliments from satisfied customers.

Promérica Bank provides a full range of financial services, including credit and deposit products, cash management and internet banking for businesses and high net worth individuals from its headquarters office at 888 S. Figueroa Street, Los Angeles, CA 90017. Information on products and services may be obtained by calling (213) 613-5000 or visiting the Bank's website at www.PROMERICAbank.com.

NOTE:

This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about Promérica Bank's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: Promérica Bank's timely implementation of new products and services, technological changes, changes in consumer spending and savings habits and other risks discussed from time to time in Promérica Bank's reports and filings with banking regulatory agencies. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and Promérica Bank does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

Contact Information

  • Contact:
    Promerica Bank
    Maria Contreras-Sweet
    Executive Chairwoman
    213.787.2802

    John H. Quinn
    CEO / President
    213.787.2803

    Frank E. Smith
    CFO
    213.787.2804