Lending mixed at Oregon's TARP banks

| Print |  Email
Archives - March 2009
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

An uncertain future

Guest Blog
Thursday, May 21, 2015
norristhumbBY JASON NORRIS | GUEST BLOGGER

Uncertainty is a part of doing business, whether in through the lens of investment opportunities and risks or the business of running an enterprise.


Read more...

Queen of Resilience

June 2015
Friday, May 22, 2015
BY AMY MILSHTEIN

Astrid Scholz scales up sustainability.


Read more...

Downtime with John Helmick

June 2015
Tuesday, May 26, 2015
BY JACOB PALMER

Live, Work, Play: CEO of Gorilla Capital.


Read more...

Green workplace 2.0

Linda Baker
Thursday, May 28, 2015
IMG 2808BY LINDA BAKER | EDITOR

Reinventing capitalism. Office dumpster divers. Handprints versus carbon footprints.


Read more...

Destination Resorts 2.0

June 2015
Friday, May 22, 2015
BY LINDA BAKER | PHOTOS BY JASON E. KAPLAN

As the recession recedes and tourism grows, Central Oregon resorts redefine themselves for a new generation.


Read more...

Eco Zoned

June 2015
Friday, May 22, 2015
BY HANNAH WALLACE

Travelers have always come to Oregon for its natural beauty. But will the increasing popularity of agritourism, European-style hiking getaways and forest resorts relax Oregon's notoriously strict land-use laws?


Read more...

Up in the Air

June 2015
Friday, May 22, 2015
BY ANNIE ELLISON

Portland tech veteran Ben Berry is leaving his post as Portland’s chief technology officer for a full-time role producing unmanned aerial vehicles (UAVs) aimed at first responders and the military. Berry’s AirShip Technologies Group is poised to be on the ground floor of an industry that will supply drones to as many as 100,000 police, fire and emergency agencies nationwide. He reveals the plan for takeoff.


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