SY Bancorp said that already well-capitalised under regulatory standards
SY Bancorp, the parent company of Stock Yards Bank & Trust Company, has declined to participate in the US Treasury Department’s capital purchase programme.
In December 2008, the company reported that it had received preliminary approval for an investment of approximately $43 million in preferred equity stock.
SY Bancorp said that already well-capitalised under regulatory standards, the company completed a $30 million public offering of trust preferred securities in December 2008 which further strengthened its capital position as of December 31, 2008.
David Heintzman, chairman and CEO of SY Bancorp, said: Although we are gratified to have been approved for the capital purchase programme (CPP) which is available only to sound institutions, we believe it is in the best interests of our shareholders to decline participation. Considering our strong capital base, which has been further enhanced by our successful trust preferred offering last month, we believe the company remains well positioned to support the banking and lending needs of customers today and our growth over the longer term.
The US Treasury recently created the capital purchase programme (CPP) to encourage qualifying U.S. financial institutions to increase the flow of financing to businesses and consumers, thereby restoring liquidity and stability to the U.S. financial system. Companies participating in the programme must adopt the Treasury Department’s standards for executive compensation and corporate governance, for the period during which Treasury holds equity issued under this programme. These standards generally apply to the chief executive officer, chief financial officer and the next three most highly compensated executive officers. The approval is subject to certain conditions and the execution of definitive agreements.