Lending mixed at Oregon's TARP banks

| Print |  Email
Sunday, March 01, 2009

STATEWIDE Oregon's slice of the Troubled Assets Relief Program has been meager. But that's not necessarily a bad thing, because the banks that got TARP money haven't been moving it through the economy any more ambitiously than the banks who passed on it.


Most of the major financial institutions that received the first $200 billion in TARP funds actually cut back on lending in the fourth quarter. The prominent exception was U.S. Bank, headquartered in Minnesota but with a significant presence in Oregon, which received $6.6 billion in TARP money and boosted loans by 3.9%, easily outperforming larger banks such as Bank of America and Citigroup.  

The other local bank to buck the trend vigorously was Eugene-based Pacific Continental Bank. The bank's executives earned approval from the Treasury for $30 million under TARP, but after considering the offer carefully, they said thanks, but no thanks.

"We wanted to remain independent," says Pacific Continental  VP Maecey Castle.

It was an unusual response, but for Pacific Continental it has been an unusual year. How many banks saw dividends increase in 2008? While others were dodging brickbats for accepting TARP money and hoarding it, Pacific Continental raised $10 million on its own and boosted lending in the fourth quarter by $32 million.

Results have been underwhelming so far for the local banks that took the money. The Oregon bank that received by far the most TARP money, Umpqua Bancorp, saw its loan balance decline by $30 million over the quarter in which it received $214 million from the Treasury. "It takes time to get these programs up and running," says Umpqua spokeswoman Lani Hayward.

Three months after receiving the TARP money, Umpqua issued a press release detailing how it intends to invest it, through four focused loan initiatives. Three of these loan programs target sectors with a real upside: helping municipalities finance public works, facilitating renewable energy projects and backing the local wine industry.  As for the fourth loan initiative, a mortgage-lending program specifically for condos that were financed by Umpqua and have been slow to sell, that one might take a while to get rolling.

BEN JACKLET


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

Storyteller in Chief: Natural Prophets

July/August 2015
Monday, July 13, 2015
BY SAM BLACKMAN

Storyteller-in-chief with the CEO and co-founder of Elemental Technologies.


Read more...

Department of Self-Promotion

Linda Baker
Tuesday, August 04, 2015

061715-awards1Oregon Business wins journalism awards.


Read more...

Big Trouble in China?

Guest Blog
Tuesday, August 18, 2015
0818-wellmanthumbBY JASON NORRIS | CFA

Earlier this month, the People’s Bank of China (PBoC) announced they were going to devalue their currency, the Renminbi. While the amount of the targeted change was to be roughly 2 percent, investors read a lot more into the move. The Renminbi had been gradually appreciating against the U.S. dollar (see chart) as to attempt to alleviate concerns of being labeled a currency manipulator.


Read more...

Grain Food

September 2015
Wednesday, August 19, 2015
BY JACOB PALMER

A Power Lunch at Bob's Red Mill Whole Grain Store and Restaurant.


Read more...

Photo Log: Shooting 10 innovators in rural health care

The Latest
Monday, August 03, 2015
007blogBY JASON E. KAPLAN | STAFF PHOTOGRAPHER

You may have noticed the photos of our rural health innovators departed from the typical Oregon Business aesthetic.


Read more...

Flattery with Numbers

July/August 2015
Friday, July 10, 2015
BY JOE CORTRIGHT

The false promise of economic impact statements.


Read more...

Reader Input: Energy Overload

June 2015
Wednesday, July 15, 2015

We asked readers to weigh in on the fossil fuel-green energy equation.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS