South Adams Savings Bank Says No to Federal Bailout Money
ADAMS, Mass. — South Adams Savings Bank (SASB) has no need to apply for participation in the U.S. Treasury Department’s Troubled Asset Relief Program (TARP) Capital Purchase Program. This program, established by the Emergency Economic Stabilization Act of 2008, was designed by Congress to assist banks that need to bolster their capital. TARP is managed by the U.S. Department of the Treasury and provides up to $250 billion in immediate funds to buy troubled mortgages and assets from financial institutions.After extensive consideration, SASB’s Board of Trustees and management determined that the bank will not apply for TARP funds due to the bank’s financial strength, excellent asset quality, and stable capital base. SASB’s capital ratio is well above federal regulations and industry norms. Having never engaged in sub prime lending, SASB remains a bank rooted in its community, has a strong balance sheet, and continues to build long lasting relationships with its borrowers.
“We are a well-capitalized bank and we have determined that we do not need the additional capital offered by the TARP to meet the banking and borrowing needs of our customers, or our long-term strategic objectives,” said Charles O’Brien, president and chief executive officer. “In fact, we have plenty of money to lend to qualified borrowers.” O’Brien added, “we regularly assess risks within the industry and our market, and take the actions necessary so that we can ride out economic cycles such as the downturn that the nation is facing. Our customers expect this type of proactive planning from their local community bank as a way to provide stability for Berkshire County. At South Adams Savings Bank our top priority is to support our customers and earn their trust. We do this on a daily basis by making sound business decisions.”
Founded in 1869, South Adams Savings Bank is a state-chartered mutual savings bank with over $190 million in assets serving the residents of Berkshire County from offices in Adams, Cheshire, Williamstown and Lee. Deposits are insured in full by the Federal Deposit Insurance Corporation and by the Depositors Insurance Fund. South Adams Savings Bank can be contacted at (413) 743-0040 or at www.sasavings.com.
For more information on the Emergency Economic Stabilization Act or TARP, please visit http://www.ustreas.gov/initiatives/eesa/.
