The Berkshire Bank announced today that on October 31, 2008, the banks holding company’s Chairman of the Board and majority stockholder, together with two non-affiliated investors, purchased a total of 60,000 shares of the holding company’s 8.0% Non-Cumulative Mandatorily Convertible Perpetual Series A Preferred Stock for an aggregate purchase price of $60 million. The financing has provided the holding company with the equity capital needed to ensure that the Company’s wholly-owned subsidiary, The Berkshire Bank, is “well capitalized” for regulatory purposes.
Mr. Moses Krausz President & CEO of the Company, commented that “the desire of the investors to enter into this transaction at this time demonstrates their faith in the health of the Bank and in its management.” I am proud that the investors exhibited confidence in the finances and operations of the Bank by providing this financing” said Krausz.
In addition, the Bank has been advised by its banking regulators that it qualifies for participation in the United States Treasury’s TARP Capital Purchase Program. Under this program, the Bank may receive preferred stock financing in an amount up to $20 Million.
Berkshire Bancorp Inc. is a bank holding company headquartered in New York City. Berkshire Bancorp has one banking subsidiary, The Berkshire Bank, a New York State chartered commercial bank. The Berkshire Bank has its main office at 4 East 39th Street in New York City and branches in Manhattan, Brooklyn, Orange and Sullivan Counties, New York, and Ridgefield, New Jersey.
The Berkshire Bank
The Berkshire Bank is a subsidiary of Berkshire Bancorp Inc., a publicly traded bank holding company, whose stock trades on the NASDAQ National Market System under the symbol BERK. The Berkshire Bank is a New York State chartered FDIC insured commercial bank with branches in New York City, Orange County, and Sullivan County in New York and Bergen County in New Jersey. With over one billion dollars in assets, The Berkshire Bank stands out among other banks because it offers highly personalized service and competitive products. For more information about the Bank or its products, visit its website at www.berkbank.com.