Bancorp’s Capital Ratios at March 31, 2010 remain relatively stable as compared to December 31, 2009:
March 31, 2010
December 31, 2009
|Total Risk Based Capital||8.45%||8.58%|
|Tier 1 Risk Based Capital||7.07%||7.22%|
|Tier 1 Leverage||4.78%||4.72%|
As of March 31, 2010 Bancorp and the Bank are considered “adequately capitalized” under applicable regulatory guidelines. There are no conditions or events since then that management believes have changed the Bank’s classification. As previously disclosed, Bancorp, the Bank and PNBK Holdings LLC, an unaffiliated entity, entered into a Securities Purchase Agreement dated as of December 16, 2009, as amended by that certain First Amendment to Securities Purchase Agreement dated as of May 3, 2010 (the “SPA”) pursuant to which Bancorp has agreed to issue and sell and PNBK Holdings has agreed to purchase 33,333,333 shares of Bancorp common stock (as adjusted) for $50,000,000, subject to certain conditions and contingencies. This transaction is expected to close in the third quarter of 2010. The capital raised from the SPA should restore the Bank to the well capitalized regulatory classification.