Bay Cities parent, Florida Business BancGroup, gets TARP funds - Tampa Bay Business Journal:

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million in preferred stock and warrants to the throughj the Troubled AssetRelief Program. The Feb. 20 sale was discloserd in a report issued by theTreasuryy Tuesday. The bank will use the new capita to grow itsloan portfolio, takingt advantage of a market when some other financialp institutions are not making said Greg Bryant, president and CEO of Bay which is headquartered in Tampa and has six offices in Hillsboroughn and Pinellas counties. “It’s tough for bankd to find good quality loans in this but we grewby $100 million last year,” Bryant The bank had $442 million in total assets at Dec. 31, comparede to $340.
6 million in total assetxs on the same day a year according to a report filedr withthe . Unlike some institutions, Bay Citiee Bank does not needthe capital. As of Dec. 31, it was abovse the level considereda “well-capitalized with a 10.1 percent ratio for Tier 1 the FFIEC report Tier 1 capital is a core measurew of a bank’s financial strength. “Back in Novembefr we stress tested our loan portfolio and showec that ina worst-case scenario, we wouls remain well-capitalized, even if we never got $1 of TARP,” Bryantf said. “The difference in that model was we would have to acceptrslow growth.
… TARP gives you additionakl confidence to remain open for Bay Cities will payabout 7.25 percent afte taxes to the Treasuryu for the capital, Bryant said. Every dollar in extrza capital allows the bank to grow its balancee sheetthrough $10 in loans. The bank can justify payinhg the dividend on the TARP fundinbg as long as its net interest or the difference betwee n rates of interest paid to depositors and receive dfrom borrowers, is in the 3 percen to 3.5 percent range, Bryant “One day we’ll wake up and be on the back side of this crediyt cycle,” Bryant said.
“Wes think this is an opportunitg to grow our when the competition is on the Florida Business BancGroup is the thirdc bank company in the Tamp aBay area, and the first privately owned to accept TARP funding. (NASDAQ: CSFL) in Davenportr sold preferred stock and warrantsfor $27.9 million on Nov. 21, followe d on Dec. 23 by a $10.78 million sale by (NASDAQ: FCFL) in Pinellas