The First Bancorp (Nasdaq: FNLC), announced Dec. 4 the company has received preliminary approval to obtain $25 million under the U.S. Treasury Capital Purchase Program.
The First also announced that a Special Meeting of Shareholders will be held on Mon., Dec. 29 to amend the Company’s Articles of Incorporation to authorize the issuance of preferred stock in order to participate in the U.S. Treasury program.
“The Capital Purchase Program was created under the Emergency Economic Stabilization Act and is intended to provide healthy financial institutions with the opportunity to raise additional capital by selling preferred stock directly to the U.S. Treasury,” said Daniel R. Daigneault, the Company’s President and Chief Executive Officer. “This is to encourage U.S. financial institutions to build their capital and to increase the flow of financing to U.S. businesses and consumers and to support the U.S. economy. By participating in the program, The First will have greater capacity to lend in the communities we serve, which is especially important in these challenging economic times.
“The program presents us with an opportunity to raise capital on very attractive terms, which are substantially more favorable than other options available under current market conditions. The $25 million that was preliminarily approved is the full amount the Company applied for and slightly less than the maximum amount allowed under the program.
“While our regulatory capital ratios are strong, the Board of Directors believes that enhancing our capital position is especially prudent given the current condition of the United States economy. In addition to participation in the Capital Purchase Program, the change in the Company’s Articles of Incorporation will provide the Company greater flexibility in capital management. This will potentially allow the Company to take advantage of favorable conditions in the investment markets in the future and issue preferred stock should the Company have the need for additional capital when advantageous terms are available.”
The Special Meeting of Shareholders will be held at 2 p.m. Dec. 29 at Skidompha Library, 184 Main St., Damariscotta, Maine. Additional information and proxies will be mailed to shareholders on or about Dec. 8.
The First Bancorp, headquartered in Damariscotta, is the holding company for The First, N.A.
Founded in 1864, The First is an independent community bank serving Midcoast and Down East Maine with 14 offices in Lincoln, Knox, Hancock and Washington Counties. The Bank provides a full range of consumer and commercial banking products and services. First Advisors, a division of The First, provides investment advisory, private banking and trust services from two offices in Lincoln and Hancock Counties.
For more information, please contact F. Stephen Ward, the First Bancorp’s Treasurer and Chief Financial Officer, at 563-3195, ext. 5001.