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Bancorp Rhode Island (BARI) Receives Help from TARP Program

December 19, 2008 2:04 PM EST
BARI Hot Sheet
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Bancorp Rhode Island, Inc.(NASDAQ: BARI) has received $30 million as a participant in the U.S. Treasury Department's Capital Purchase Program. The Capital Purchase Program is a voluntary program available to healthy financial institutions such as BankRI, which is designed to increase the availability of credit to businesses and consumers.

In October, BancorpRI reported a year-over-year increase in both third quarter and year-to-date earnings and a 15 percent increase in commercial loan balances from the third quarter of 2007.

In exchange for the Treasury Department's $30 million investment, BancorpRI issued 30,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, with a liquidation preference of $1,000 per share. As part of the transaction, the Treasury Department also received 10-year warrants to purchase 192,967 shares of BancorpRI common stock at an initial exercise price of $23.32 per share. The preferred stock and warrants will be accounted for as an addition to BancorpRI's regulatory capital.

Bancorp Rhode Island, Inc. is the holding company for Bank Rhode Island (the Bank). It has no significant assets other than the common stock of the Bank.[SM]

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