NBT Bancorp has elected to not take part in the US Treasury Department’s capital purchase programme.
The company has recently received a proposed allocation of funds under the Treasury’s capital purchase programme (CPP).
Martin Dietrich, president and CEO of NBT Bancorp, said: Our company is currently well-capitalised and meeting the lending needs of our customers. Given this and the requirements the programme would impose on our business, we believe that our participation in the programme would not be in the best interests of our shareholders.
NBT Bank’s is an independent community bank. It is into commercial, online and personal banking.
The US Treasury recently created the capital purchase programme (CPP) which is part of the troubled assets relief programme to encourage qualifying U.S. financial institutions to increase the flow of financing to businesses and consumers, thereby restoring liquidity and stability to the U.S. financial system. Companies participating in the programme must adopt the Treasury Department’s standards for executive compensation and corporate governance, for the period during which Treasury holds equity issued under this programme. These standards generally apply to the chief executive officer, chief financial officer and the next three most highly compensated executive officers. The approval is subject to certain conditions and the execution of definitive agreements.
