Curious if your bank received money from the TARP program?

January 5, 10:28 AMBaltimore Financial ExaminerTom Taylor, CPA/PFS

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Here's a list of local Maryland based banks that have received money from the US Treasury's Troubled Assets Relief Program ("TARP").  I've been searching for a comprehensive list for some time along with background on each transaction and low and behold our friends over at CityBizList compiled a list of press releases. 

It's important to note that the US Treasury says the TARP program is for healthy banks and that the investment by Treasury in each bank has a maximum limit of 3 percent of risk-weighted assets in exchange for preferred stock in the banks that pays a coupon of 5%.  The Treasury also receives common stock warrants that gives the Treasury an option to buy common stock in each bank at a future time.

Here's the list from CitzBizList...

• 12/24 - BCSB Bancorp Completes $10.8 Million TARP Funding
• 12/19 - Patapsco Bancorp, Inc. Raises $6 Million in TARP Funding
• 12/19 - Annapolis Bancorp, Inc. Receives Approval for $8M From the U.S. Treasury Department
• 12/18 - Shore Bancshares Receives Preliminary Approval for $25 Million for TARP Funding
• 12/6 - Eagle Bancorp Receives $38.2 Million Investment Under Treasury Capital Purchase Program
• 12/5 - Old Line Bancshare Signs Letter of Agreement for $7M in TARP Funding
• 12/5 - Sandy Spring Bancorp Completes $83 Million in TARP Funding
• 11/18 - Severn Bancorp To Place $30 Million of New Securities
• 11/17 - Provident Bankshares Receives $151 Million Investment from U.S. Treasury
• 11/15 - FDIC Approves CapitalSource Commercial Bank Application

The Wall Street Journal is also maintaining a list that is sortable by State.  Both lists appear to be updated just prior to the final round on 12/23/08.  I'd expect them to be updated at any point.  Two banks that can be added to the lists are Cecil Bancorp in Elkton and Capital Bancorp of Rockville.  According to the Baltimore Business Journal, each received $11.6 and $4.7 million respectively. 

Here's the list in pdf format from the Treasury website.  Capital Purchase Program: Transaction Report

My take is that for whatever reason, the plan seems to be working.  The credit markets are working out their problems in an orderly manner and key metrics like the TED Spread (a key indicator of perceived credit risk in the general economy) and interest rates in general are falling.  Indicating credit should be easier to obtain.

The problem now, if any, is two fold.  Will banks lend the money and do businesses want the money?  Both good questions that we will know the answers to in the next six to twelve months.

Tom Taylor, CPA is a fee-only Financial Planner and Certified Public Accountant and can be contacted at Thoma Capital Management in Towson, MD.  He is a member of NAPFA and the MACPA.