TARP Information
Dear Customer,
Today FBHC Holding Company, the Boulder-based parent company of Flatirons Bank, received funds totaling approximately $3 million from the US Treasury as part of the Capital Purchase Program under the Troubled Asset Relief Program (now commonly known as "TARP"). This program was initially conceived to facilitate the government's purchase of subprime mortgage assets from the private sector, but was subsequently adapted to forcibly recapitalize many of the country's largest banks (and a few highly visible non-bank enterprises), thus stigmatizing it as a "bailout" program for large financial institutions. (Many of these large financial firms have since repaid these funds to the government.)
The more recent application of funds under TARP has focused on providing incremental capital to healthy community bank lenders across the US. Only the strongest of institutions qualify for these funds, a meaningful departure from the other "too big to fail" bailouts that have been provided under the TARP umbrella.
We were pleased to qualify for these funds based upon the strong capital, asset quality, and liquidity positions of Flatirons Bank. Adding these funds to Flatirons Bank's capital account over time will bolster the bank's already exemplary capital position, increase the bank's legal lending limit, and ensure the bank's ability to better serve its current and prospective customers over time.
The bank's management believes that this incremental capital will also facilitate the bank's expansion plans over time, without in any manner unduly influencing the bank's ability to conduct its business in the ordinary course.
We are pleased at the level of confidence the US Treasury has in our institution, and believe that the bank and its customer base will benefit from this low-cost source of capital in the current banking environment.
Please contact any member of our staff should you like to discuss your current banking needs or have specific questions regarding this communication.
Sincerely,
|
Mark Yost
Flatirons Bank Chairman |
Kyle Heckman
Flatirons Bank President |
