Another economically recessed spot of Colorado — Alamosa County — will see a share of federal bank aid.
The U.S. Treasury has purchased $5.5 million in stock from First Southwest Bank in Alamosa, making it the state’s sixth financial institution to benefit from the Troubled Asset Relief Program.
In all, Colorado banks have taken just over $100 million in TARP funds since the program was created last year to help stimulate the economy.
The latest allocation could boost an agricultural-based community experiencing a slightly higher unemployment rate — at 7.6 percent — than the state average of 7.2 percent.
“Our hope is to leverage it to make more loans,” said bank president David Broyles. “Over the next year or so, we’ll grow it to about $30 million” in lending.
As with other executives of banks in the TARP program, Broyles is predicting it could be a year or longer before the money flows into the economy, given the need to keep lending risks low.
Businesses as diverse as potato warehouses, farms and equipment dealers ultimately could benefit, allowing them to add jobs or boost spending.
Some TARP funds, Broyles said, could be used to acquire another bank.
“We’re always looking for an opportunity, and that’s in the back of our minds,” he said.
First Southwest operates nine branches across southwestern Colorado, with total assets of $240 million and loans valued at about $200 million, according to Broyles.
CoBiz Financial of Denver has the state’s largest TARP infusion at $65 million.
Miles Moffeit: 303-954-1415 or mmoffeit@denverpost.com
