Garrett Harris 10:27 p.m., May 22
Treasury Dollars for Local Bank
First PacTrust Bancorp of Chula Vista, the holding company for Pacific Trust Bank, today announced a $32 million investment in the form of preferred stock purchases.
The stock was purchased by the federal Department of the Treasury through its Small Business Lending Fund. According to the Treasury’s website, the purpose of creating the $30 billion fund was to “encourage lending to small businesses by providing capital to qualified community banks with assets of less than $10 billion.” This is to be done by providing smaller banks with cash infusions at favorable interest rates.
"We believe our participation in the SBLF program is a great opportunity for the Company and the Bank to continue to meet the credit needs of the small business community and also to benefit our stockholders," said president and CEO Gregory A. Mitchell in a press release. No specific loan applications dependent on treasury financing were mentioned.
Pacific Trust Bank operates 11 branches in San Diego and Riverside Counties.
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