UPDATE: Small Miss. banks still not interested in TARP
Published: September 28,2009
Washington is considering another round of bank bailouts for banks that were too small or risky for the first disbursement of Troubled Asset Relief Program funds in fall 2008. But “bailout” might not be the right word, since some banks receiving these funds are in good financial standing.
Qualifications are vague, but these new funds could go to banks with less than $5 million on their books that were too weak to qualify for money the first time around. Small banks have until Nov. 21 to apply to get TARP funds.
Many banks currently receiving funds don’t need them. Banks that are in good financial standing, showing positive earnings and the ability to raise money on their own, have received funds.
“The banks that are getting the TARP money now really don’t need it,” said Steve Verdier, who heads government affairs for the trade group Independent Community Bankers of America, in a recent Time article. Verdier’s group favors extending TARP funds to banks that are struggling but not about to fail.
John Pittman, president of Planter’s Bank in Greenwood, is puzzled by the possibility of a new round of bailouts. Pittman thought all banks had been originally eligible for TARP money.
“I’m not sure I understand where (Barney) Frank’s coming from. I’m not sure if he’s suggesting there were some banks that should get (TARP money) that didn’t. I didn’t know it was a size issue,” Pittman said. Pittman wonders if they are trying to help banks that fell through the cracks the first time around.
Planter’s, which has locations in the Mississippi Delta, has $537 million in total assets and is happy not to be in a position to need government funds.
“We’re doing well and continuing to do well,” Pittman said. “We certainly have money to loan and certainly want to bring this economy back. It’s a time of uncertainty.”
Three Mississippi-based banks – BancorpSouth Inc. of Tupelo, Hancock Holding Company of Gulfport and Citizens Holding Company of Philadelphia – made their decisions not to accept TARP funds public in fall 2008, taking the chance to tout their financial stability.
Some Mississippi banks who have accepted TARP funds are: Regions Bank; Trustmark Corporation of Jackson; Sun Trust; First M&F in Kosciusko; BankFirst Capital Corporation of Macon; Banc Plus Corporation in Ridgeland; and Lafayette Bancorp, the holding company for Oxford University Bank.
Community Bancshares of Mississippi received $52 million of $75 million federal funds released this month. A spokesperson could not be reached at press time.
To sign up for Mississippi Business Daily Updates, click here.
FOLLOW THE MBJ ON TWITTERMy Tweets
Twang & Tourism: The Country Music Trail
Top Posts & Pages
- TECH 21 — Mississippi's most wanted in technology
- REVVING UP — Motorcars of Jackson is preparing to open its first-ever showroom on I-55
- Officials set hunting dates for birds; expands dove season by 20 days
- Mississippi judge dismisses lawsuit seeking to overturn Sen. Cochran's GOP primary win
- Judge expected to rule today on McDaniel's challenge of loss to Cochran
- FLIPPING OUT — Flipping houses is popular in much of the country, but in Mississippi ...
- Isle of Capri reports decreased in-state revenues; experiencing 'market pressures'
- Circuit clerks question how to get records to McDaniel's trial
- Chefs John Folse and Rick Tramonto are dotting every ‘i’ and crossing every ‘t’ in the development of Seafood R’evolution, which is set to open in November