WASHINGTON – Independence Bank, a one-branch institution in East Greenwich that is Rhode Island’s smallest bank in terms of deposits, has received $1.07 million as a participant in the U.S. Treasury’s Capital Purchase Program (CPP).
The Treasury announced the infusion yesterday as part of a $14.77 billion round of banking investments under the CPP. The program – part of the Troubled Assets Relief Program (TARP) established this fall by the U.S. Emergency Economic Stabilization Act of 2008 (EESA) – allows the federal government to buy shares of healthy banks, in hopes the cash infusion will help thaw the credit markets.
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So far, the Treasury has made $192 billion of CPP investments – ranging from $1 million to $25 billion – out of the $250 billion in funds allocated to the program. Participating institutions agree to issue preferred stock and warrants in exchange for the infusions.
Also receiving a federal investment in the CPP’s latest round was was Rockland, Mass.-based Independent Bank Corp (Nasdaq: INDB). The Treasury yesterday confirmed that the company had received $78.16 million. Independent Bank – the parent of Rockland Trust Co. – had announced preliminary approval for such an investment in December.
Additional information about federal financial rescue efforts is available at www.treas.gov or a new multiagency site called EconomicRecovery.gov.
Independence Bank is a one-branch bank in East Greenwich that recently celebrated its fifth year. For additional information, visit www.independence-bank.com.
Independent Bank Corp. (Nasdaq: INDB) is the parent of Rockland Trust Co., a full-service community bank with assets of $3.5 billion that serves southeastern Massachusetts, Cape Cod and Rhode Island. Additional information is available at www.RocklandTrust.com.
