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January 9, 2009

Bar Harbor bank approves selling stock to feds

By The Mainebiz News Staff

Bar Harbor Bankshares yesterday said its shareholders have changed the company's Articles of Incorporation to allow it to issue preferred stock, a necessary step to receive stimulus funds from the U.S. Treasury.

The bank received preliminary approval from the Treasury to receive approximately $18.75 million under the Treasury's Capital Purchase Program, part of Congress's Emergency Economic Stabilization Act of 2008. In making the announcement, CEO Joseph Murphy made clear that the bank is in fine financial health, but said the opportunity to acquire capital at such favorable terms was in "the best interests of its shareholders."

The Capital Purchase Program was created to provide financially healthy local and regional banks with additional capital to stimulate economic activity in their local markets through personal and commercial lending programs. Northeast Bank in Lewiston and The First Bancorp in Damariscotta have also tapped the Treasury for stimulus funds.

 

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