I am very happy that VC Bank finally got the TARP! This will boost the confidence of investors. Stocks of small banks like this one have been damaged by what the large crooked banks has done to the economy. I don't believe this bank needs TARP but it is important for the investor confidence and getting a pretty good deal on the TARP money, so why not. Given the low volume, this stock will probably move up slowly and eventually above $10. There should not be day traders invested in this stock due to the low volume, so I don't think current long term investors who bought at higher PPS will sell this one anywhere near this price range. It is traded at ridiculous 5-year low, and it has mostly been traded around $15 area.
The bank was well-capitalized before TARP and even better after that with very good deal on the interest rates. The government is making smart investments to small banks, and it is a win-win situation for both investors and the government. However, I think TARP to the large crooked banks like JPM is waste of our TAX money!
"Before receiving the TARP funds, Valley Community Bank was well-capitalized as measured by all regulatory guidelines. On September 30, 2008, the Company's Tier 1 Leverage Capital Ratio was 9.67%, and its Total Risk-Based Capital Ratio was 11.04%. Based on the September 30, 2008 financial statements, the addition of new capital through the Treasury's Capital Purchase Program will increase the Bank’s Tier 1 Leverage Capital Ratio to approximately 12.57% and Total Risk-Based Capital Ratio to approximately 14.02%."