Community Bank passes on relief; facility is ‘well positioned,’ CEO says

Even though many other banks are receiving federal help, Raceland-based Community Bank has announced it is not participating in the U.S. Treasury Department’s Troubled Asset Relief Program.

The program is buying some assets and lending money to financial institutions to help them stay afloat during the current financial crisis.

Community Bank, which operates 10 banking centers in Lafourche, Terrebonne, Assumption and St. John parishes, is strong, said President and CEO Michael Riche.

“In addition to the current financial strength of our bank, we are experiencing substantial growth and consistent, quality loan demand,” Riche said in a release.

Through September 30, Community Bank had $318 million in assets, 24 percent higher than the previous year, the release states.

Riche said the bank is also supplying loans through federal funds overnight funding, a program in which banks provide loans to one another.

In November, TARP’s Capital Purchase Program allotted $250 billion for bank equity infusions and $40 billion for an equity infusion into the insurer American International Group.

In October, the Treasury Department bought some of the assets of several big investment banks, including Goldman Sachs and Citigroup.

“Our view is that some of the restrictions within the announced provisions of the program appear to limit our options,” Riche said in the release. “This program makes sense for many organizations, but Community Bank is well positioned for the future without the need for U.S. Treasury capital under the Capital Purchase Program.”