By Carol Wersich, Evansville Courier & Press
American Community Bancorp, the holding company for Bank of Evansville, has been chosen to participate in the U.S. Treasury Capital Purchase Program.
Under the program, subject to the satisfaction of standard closing conditions, the Treasury Department is offering to invest up to about $7.5 million in newly issued preferred equity stock of American Community Bancorp, Inc.
Michael S. Sutton, chief executive officer, said he expects the offer to be wrapped up within the next 30 to 90 days.
"We're in the very early stages of evaluating this," he said.
The capital purchase program is part of the government's effort to restore confidence in the nation's financial system by providing capital to the U.S. banking system.
In an interview, Sutton said: "I think fundamentally banks are considering this or other capital alternatives for several reasons.
"It helps you to look at opportunities to selectively grow your business and to increase lending opportunities," he said.
Sutton said it also provides a cushion to help banks weather the economic cycles.
"We are pleased to have been approved for the program.
"While we have not entered into an agreement with the Treasury Department to participate in this voluntary program, we are considering the possibility and evaluating program details at this time."
Bank of Evansville began operating in July 2001.
At the end of last year, Bank of Evansville was considered "well capitalized" by all regulatory standards.
American Community Bancorp, Inc., through its wholly owned subsidiary, Bank of Evansville, provides a full range of commercial and consumer banking services in the Evansville area.