Fifteen community banks received bailout funding last week, continuing a trend of smaller banks being as eager to join the Troubled Asset Relief Program as large banks are to escape it.
Chicago-based Metropolitan Bank Group Inc. received $71.5 million from the Treasury, the most of any bank in recent weeks. A related bank, NC Bank Inc. received $6.8 million. Together, the two banks have $3.5 billion in assets and more than 100 branches in the city and suburbs of Chicago, the Chicago Business newspaper reported.
California-based Fremont Bancorporation received $35 million, the second largest infusion of capital. The decision to accept bailout funding, however, may have come to a surprise to local residents. In May the company was a subject of an article in the Contra Costa Times about banks that were strong without government assistance.
At the time, the bank boasted of plans to expand quickly into the mortgage origination business -- plans that may have fallen through as the California housing market continues to struggle. Fremont Bancorporation originated $800 million in new home loans during the first three months of 2009, but first quarter earnings of $5 million in the first quarter were 35.7 percent below the same period the year before.
Other banks receiving bailout money include Stearns Financial Services Inc. ($24.9 million), FC Holdings Inc. ($21 million), Security Capital Corp. ($17.4 million), Alliance Financial Services inc. ($12 million), M&F Bancorp Inc. ($11.7 million), Gulfstream Bancshares Inc. ($7.5 million), Waukesha Bankshares Inc. ($5.6 million), Fidelity Resources Co. ($3 million), Signature Bancshares Inc. ($1.7 million), and Gold Canyon Bank ($1.6 million).
The ongoing interest of small banks in the bailout program stands in marked contrast to the attitude of large financial institutions, many of which have rushed to return the funding they received late last year. Most have cited an unpleasant regulatory environment, including restrictions on executive pay and dividend distribution, as reasons for leaving the program. Smaller, closely held banks do not seem as concerned by such issues.
Chicago-based Metropolitan Bank Group Inc. received $71.5 million from the Treasury, the most of any bank in recent weeks. A related bank, NC Bank Inc. received $6.8 million. Together, the two banks have $3.5 billion in assets and more than 100 branches in the city and suburbs of Chicago, the Chicago Business newspaper reported.
California-based Fremont Bancorporation received $35 million, the second largest infusion of capital. The decision to accept bailout funding, however, may have come to a surprise to local residents. In May the company was a subject of an article in the Contra Costa Times about banks that were strong without government assistance.
At the time, the bank boasted of plans to expand quickly into the mortgage origination business -- plans that may have fallen through as the California housing market continues to struggle. Fremont Bancorporation originated $800 million in new home loans during the first three months of 2009, but first quarter earnings of $5 million in the first quarter were 35.7 percent below the same period the year before.
Other banks receiving bailout money include Stearns Financial Services Inc. ($24.9 million), FC Holdings Inc. ($21 million), Security Capital Corp. ($17.4 million), Alliance Financial Services inc. ($12 million), M&F Bancorp Inc. ($11.7 million), Gulfstream Bancshares Inc. ($7.5 million), Waukesha Bankshares Inc. ($5.6 million), Fidelity Resources Co. ($3 million), Signature Bancshares Inc. ($1.7 million), and Gold Canyon Bank ($1.6 million).
The ongoing interest of small banks in the bailout program stands in marked contrast to the attitude of large financial institutions, many of which have rushed to return the funding they received late last year. Most have cited an unpleasant regulatory environment, including restrictions on executive pay and dividend distribution, as reasons for leaving the program. Smaller, closely held banks do not seem as concerned by such issues.
published July 2, 2009, 0 Comments
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