Mission Valley Bancorp in Sun Valley, Calif., said Monday that it received $4.8 million of capital from a Treasury Department program designed for community development banks.
The $255.3 million-asset company exchanged the $5.5 million investment received through the Troubled Asset Relief Program for a $4.8 million capital injection from the Community Development Capital Initiative. It received the new capital Friday.
The investment carries an annual dividend rate of 2% for the first eight years, and the rate jumps to 9% after that. The Tarp capital carried a 5% annual dividend rate for the first five years, with a jump to 9% after that.
Mission Valley also received a $600,000 Bank Enterprise Award for its lending efforts in low-income communities this year. The company was one of 69 institutions to receive an award from the Community Development Financial Institutions Fund.