Birmingham Bloomfield Bancshares, the holding company for Bank of Birmingham, has received preliminary approval from the US Department of the Treasury for approximately $1.63m under the Treasury’s troubled asset relief programme capital purchase programme.
The preliminary approval is subject to the programme’s conditions and the execution of a definitive agreement and is expected to be finalised in April 2009.
The purpose of the Treasury’s $250 billion capital purchase programme is to bolster confidence in the financial system, increase the flow of financing to businesses and consumers, assist delinquent mortgage borrowers and support the US’ economy. Participation in this programme is voluntary.
The US Treasury Department has stated that it would only buy preferred stock from banks and thrifts considered to be healthy. The plan is part of a coordinated strategy with the Federal Reserve and financial service regulators to try to limit the impact of the current economic turmoil on individuals, businesses and state and local governments.
Robert Farr, president and CEO of Birmingham Bloomfield Bancshares, said: The injection of troubled asset relief programme (TARP) funds will both strengthen our balance sheet and enable us to prudently increase lending. One especially important commercial-lending area for us is the area’s small and medium companies which have been virtually squeezed out of the credit markets. We are optimistic about 2009 and our prospects for continued growth.
