Why did Heritage Oaks Bank/Business First decide to participate in the treasury program?
In today’s economic climate, being well capitalized is of critical importance. Capital is what allows a bank to grow, lend money and overcome many of the obstacles we are confronted with during a recession such as the one we are now experiencing. Heritage Oaks Bank studied extensively the Treasury’s Capital Purchase Program prior to submitting an application for acceptance. Our conclusion was this was a very inexpensive source of capital. In addition, the FDIC encouraged all financial institutions who qualified under this Capital Program to apply. The reasons for this are many, but in short, the regulatory agencies are concerned that banks remain well capitalized thereby allowing us to continue servicing our communities no matter the economic climate we are experiencing. It is important to note that we had to submit an application and meet strict approval criteria prior to being approved for this funding. With this newly acquired capital, Heritage Oaks Bank will be well above the “well
