WASHINGTON — The owner of Boulder-based FlatIrons Bank is getting just over $3 million under a Treasury Department program aimed at shoring up the financial system.
The Treasury Department said Thursday it has pumped $29.3 million into 10 banks, including FlatIrons owner FBHC Holdings Co., which will be the last to receive investments as part of the taxpayer-funded program.
“It allows us to make an additional $25 million in loans we otherwise wouldn’t have been able to make,” said Mark Yost, chairman of FBHC Holding, which acquired FlatIrons Bank last year. “Our market and our institution can benefit from this type of funding. We can pay it back at any time.”
The aid comes from a $700 billion financial bailout program created last year during the height of the financial crisis.
The investments in the 10 banks are the last under Treasury’s so-called Capital Purchase Program, Treasury officials said. By law, the Treasury must report the transactions — which occurred Tuesday — within two business days.
Although the government anticipated winding down support for banks, Treasury Secretary Timothy Geithner recently extended the publicly derided bailout program, saying it will now focus on helping homeowners avoid foreclosures and small businesses get loans.
In addition to FlatIrons, the banks receiving the latest outlay are: Atlantic Bancshares Inc. in South Carolina; Union Financial Corp. in New Mexico; Mainline Bancorp Inc., in Pennsylvania; Western Illinois Bancshares Inc. in Illinois; DeSoto County Bank in Mississippi; Lafayette Bancorp. Inc. in Mississippi; Private Bancorporation Inc. in Minnesota; CBB Bancorp in Georgia; and Illinois State Bancorp Inc. in Illinois.
