Wainwright Bank to get 22M federal investment

Wainwright Bank & Trust Co. said Thursday that the U.S. government has approved a $22 million investment in its securities as part of a federal plan to boost capital in financial institutions and spur lending.

The bank, which describes itself as a socially progressive company, said the U.S. Treasury has given preliminary approval to purchase preferred stock and warrants to buy common shares, as part of the federal government's $250 billion TARP Capital Purchase Program.

The $22 million investment represents 3 percent of the bank's total risk-weighted assets as of Sept. 30.

The infusion of capital will raise the bank's leverage capital ratio to 9.04 percent from 6.81 percent at the end of the third quarter. Tier 1 risk-based capital ratio, a measure of financial strength, will go up to 12.07 percent from 9.1 percent. Wainwright's total risk-based capital ratio rises to 13.79 percent from 10.82 percent.

"Although we are already 'well capitalized' as defined by federal banking regulations, we believe the Capital Purchase Program represents a unique opportunity to raise additional capital on attractive terms," Chief Executive Jan A. Miller said in a statement.

Wainwright still awaits final approval of the investment from the Treasury Department and other customary closing conditions.

The bank has $1 billion in assets and 12 branches in the Boston area. Wainwright said it has committed $700 million in loans to fund projects in affordable housing, environmental protection, homeless shelters, inner-city schools and others. The bank gives out an annual 'Social Justice Award' to outstanding nonprofits and affiliated individuals.

http://money.cnn.com/news/newsfeeds/articles/apwire/

Business Financial Services

Wainwright Bank to get 22M federal investment