The US Treasury created the capital purchase programme to encourage U.S. financial institutions to build capital
S&T Bancorp, a bank holding company that has two wholly owned subsidiaries, namely S&T Bank and 9th Street Holdings, has received preliminary approval of its $109 million application to participate in the US Treasury Department’s capital purchase programme.
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.
Todd Brice, president and CEO of S&T Bancorp, said: S&T Bancorp is pleased to be among the institutions that the US Treasury has invited to participate in this programme. The additional capital will improve our already well-capitalised position, increase our lending capacity and better position us to take advantage of the growth opportunities that are currently available for banks such as S&T Bank.