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

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...

Best Foot Forward

July/August 2015
Monday, July 13, 2015
BY CHRIS NOBLE

Whether you're stepping out to work or onto the track, Pacific Northwest shoe companies have you covered.


Read more...

Reader Input: School Choice

September 2015
Thursday, August 20, 2015

Which of the following would be most effective in reducing the cost of operating a public university in Oregon?


Read more...

Back to School

September 2015
Wednesday, August 19, 2015
BY CHRIS NOBLE

Oregon is home to an abundance of gritty warehouses reborn as trendy office spaces, as well as crafty hipsters turned entrepreneurs. Does the combination yield an equally bounteous office products sector? Not so much. Occupying the limited desk jockey space are Field Notes, a spinoff of Portland’s Draplin Design Company, and Schuttenworks, known for whittling Apple device stands. For a full complement of keyboard trays, docking stations and mouse pads, check out the GroveMade line, guaranteed to boost the cachet of even the lowliest cubicle drone. 


Read more...

Flattery with Numbers

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

The false promise of economic impact statements.


Read more...

Greenpeace (temporarily) prevents Shell oil ship from leaving Portland

The Latest
Thursday, July 30, 2015
hangersBY JASON E. KAPLAN | STAFF PHOTOGRAPHER

Greenpeace activists suspended themselves from the St. John's Bridge in an attempt to prevent a ship from heading to the Arctic.


Read more...

Downtime with Jill Nelson

September 2015
Wednesday, August 19, 2015
BY JACOB PALMER

Live, Work, Play wit the CEO of Ruby Receptionists.


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