Eagle Financial, the holding company for Bank of Clarke County, has announced that it will not accept a capital investment from the US Treasury Department through its capital purchase programme which is a part of the troubled asset relief programme. The company received preliminary approval to receive a $10 million investment through the capital purchase programme (CPP) on December 1, 2008, but, determined that it does not need the additional capital.
The company said that it continues to be well-capitalised under current regulatory capital guidelines and its risk-based capital ratios increased from September 30, 2007 to September 30, 2008.
According to Eagle Financial, the current amount of capital will allow the company to grow its total assets and make loans to customers. The company’s management also believes that the current amount of capital is adequate to manage any credit issues within the loan portfolio.
John Milleson, president and CEO of Eagle Financial, said: Preliminary approval to participate in the CPP validates our capital position since the programme was intended for strong financial institutions. Sticking to conservative principles and maintaining steady profits have helped generate the capital that allows us to turn down the government’s assistance. Management and the board of directors are confident that we can grow the company and manage loan issues on our own.
