DENVER—Two more Colorado banks have landed federal bank aid—and one of them pulled in the biggest statewide share so far.
Alpine Bank of Glenwood Springs, with $2.7 billion in assets and branches in ski-resort towns, received $70 million. Millennium Bank of Edwards was given $7.2 million.
That brings to eight the number of Colorado banks participating in the Troubled Asset Relief Program, allowing the Treasury Department to buy preferred stock.
Colorado banks have received more than $180 million since the program was created last year, The Denver Post reported. At the end of March, the state ranked fifth among 11 Western states in pledged funds.
Banks that participate in the program can get capital at cheaper interest rates than in private-equity markets, and then leverage that money multiple times. Analysts say $70 million in aid can be turned into $400 million or more in loans.
Banks must be in good fiscal health to qualify.
“It came down to one question for us: Do we feel like we can best help our communities with or without the money?” said Glen Jammaron, vice chairman of Alpine.
Alpine did see an increase in loan losses from 2007 to 2008, and its concentration of commercial real estate loans has exceeded levels recommended by federal regulators. But its loan standards are time-tested and strong, Jammaron said.
He added that the bank is creating new loan programs, including one designed to finance property development, to get the dollars moving into the community.
Millennium Bank also is adamant about using its TARP money primarily to boost lending “to families and business,” Chairman Donald Mengedoth said.
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Colorado banks on aid list
Alpine Bank, Glenwood Springs, $70 million
CoBiz Financial, Denver, $64.4 million
Bankers’ Bank of the West, Denver, $12.6 million
ColoEast Bankshares, Lamar, $10 million
First Western Financial, Denver, $8.5 million
Millennium Bank, Edwards, $7.26 million
First Southwest Bank, Alamosa, $5.5 million
Columbine Capital, Buena Vista, $2.2 million
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Source: U.S. Treasury Department
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Information from: The Denver Post,
