[December 04, 2008] StellarOne To Receive $30 Million Under Treasury Program Tweet (financialwire.net via COMTEX) -- December 4, 2008 (FinancialWire) -- StellarOne Corp. (NASDAQ: STEL) (Current Market Cap: US$344.86 Mil.) said that it has received preliminary approval of its application for a $30 million investment by the United States Department of the Treasury under its Capital Purchase Program. Under the TARP program, qualifying banks may request additional capital of up to 3% of risk weighted assets. StellarOne's request amounts to roughly 1.15% of its posted risk weighted assets at September 30. StellarOne plans to issue up to $30 million of preferred stock, and warrants to purchase around $4.5 million of StellarOne common stock to the Treasury. The additional capital will increase the company's total risk-based capital ratio to approximately 14.50% as of September 30. The non-voting senior preferred shares to be issued to the Treasury will pay a dividend of 5% annually for the first five years after issuance and 9% annually after the fifth year, if they are not redeemed. Charlottesville, Virginia-based StellarOne is the holding company for StellarOne, a community bank offering a range of business and consumer banking services, including trust and asset management services, via its wealth management division. StellarOne operates 63 full-service financial centers, one loan production office, and over eighty ATMs serving the New River Valley, Roanoke Valley, Shenandoah Valley, and Central and North Central Virginia. FinancialWire" is a fully independent, proprietary news wire service of Investrend Information (a division of Investrend Communications, Inc.). FinancialWire" news is written by professional journalists, dedicated to pure journalistic standards. FinancialWire" does not receive or accept any compensation from any individual or subject company (or representative thereof) for its news or opinions. All FinancialWire" news is available at http://www.financialwire.net . Please address any inquiries to [email protected] . Free annual reports for companies mentioned in the news are available at http://investrend.ar.wilink.com/?level=279 . http://www.financialwire.net [ Back To TMCnet.com's Homepage ]