Provident Bank passes on TARP help
The parent company of Provident Bank in Montebello said it will not avail itself of the asset protection services that the U.S. Treasury is providing in the wake of the financial crisis. Provident said it is well-capitalized and does not need the assistance under the Troubled Asset Relief Program, which is helping other banks that are struggling with subprime mortgage securities on their balance sheet. Provident has no subprimes in its portfolio.
Provident did say it will join an expanded insurance program through the Federal Deposit Insurance Corp. that includes unlimited coverage of both non-interest bearing demand deposit accounts and NOW accounts paying up to 50 basis points. The bank said it would join the program through Dec. 31, 2009. The bank said that the added coverage is particularly valuable to small businesses to assure that their payroll accounts are fully insured.