BEDFORD, N.H., July 11, 2011 /PRNewswire/ -- Joseph B. Reilly, President/CEO of Centrix Bank (OTC Bulletin Board: CXBT), announced today that the Bank's Board of Directors unanimously voted to accept a Preferred Stock investment of $24.5 million from the Small Business Lending Fund (SBLF), a program available through the U.S. Treasury Department. Enacted into law as part of the Small Business Jobs Act of 2010, the SBLF is a $30 billion fund created to encourage lending to small businesses by providing capital to qualified community banks with less than $10 billion in assets.
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The new infusion of capital will provide Centrix Bank with additional capital to support the expansion of its small business loan portfolio, as well as enable it to continue to grow and to extend future opportunities for the Bank. Centrix is in the process of working with the U.S. Treasury Department to conclude this new capital purchase; anticipating to occur within the next thirty (30) days.
"We are pleased to be a participant in the U.S. Treasury Department's Small Business Lending Fund program," said Joseph B. Reilly, President/CEO. "This new source of capital will enable us to continue to serve the small business community through our growing portfolio of commercial lending products and services. Centrix is a prime example of how providing healthy community banks with capital should result in continued lending to support the small business community, which is central to creating jobs and restoring economic prosperity for our nation."
The SBLF investment will qualify as Tier 1 capital for regulatory purposes. After giving effect to Centrix Bank's planned redemption of $7.5 million of Centrix Bank Preferred Stock previously purchased by the U.S. Treasury Department under an earlier program known as the Capital Purchase Program (CPP), the SBLF investment will increase Centrix Bank's Tier 1 capital by $17.0 million.
About the U.S. Treasury Department's Small Business Lending Fund (SBLF)
The Small Business Lending Fund (SBLF) was enacted into law as part of the Small Business Jobs Act of 2010. The SBLF is one part of the Obama Administration's comprehensive agenda to help small businesses access the capital they need to invest and hire. In addition, the SBLF program supports Main Street banks, community loan funds, and small businesses; helps foster lending in local communities; and provides incentives for Main Street banks to increase their lending to small businesses. Additional information on the SBLF program can be found on the U.S. Treasury Department's website at www.treasury.gov/resource-center/sb-programs.
About Centrix Bank
Centrix Bank is a full service commercial bank offering highly personalized and responsive service to small and medium-sized businesses and professionals, municipalities and not-for-profit organizations. The Bank services customers throughout southern New Hampshire and beyond from six full service offices located in Bedford, Concord, Dover, Manchester, Milford and Portsmouth, and a loan production office in Nashua. Centrix was named to SNL Financial's annual list of "Top 100 Best Community Banks" in the U.S., US Banker magazine's "2010 Top 200 Community Banks" in the U.S., New Hampshire Business Review's "2011 Best of Business" for Local Best Bank for Small Business, Business NH Magazine's 2010 NH's "100 Top Public Companies" and "2006 Business of the Year." The company's common shares are quoted on the OTC Bulletin Board (OTCBB) under the symbol "CXBT". For more about Centrix Bank, please visit centrixbank.com or call (603) 647-4446.
SOURCE Centrix Bank
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