Since accepting funds, loans have increased by 15%
This April, Menomonee Falls-based Securant Bank & Trust accepted $5.1 million from the Capital Purchase Program (CPP), an extension of the federal TARP program.
Over the last year, many of the nation’s largest banks have taken much larger cash infusions through the TARP and CPP programs. In many cases, those banks used the taxpayer-backed loans to shore up their balance sheets, which have been battered by losses in the real estate and construction markets.
“For Securant, accepting TARP funds is a tactic to fuel lending and make our strategic plan happen,” said David Davis, president and CEO of the bank. “It meets the funding needs that have always been part of our larger plan, though the recession has led us to a different source. We didn’t have to change the way we do business. It was simply a decision about the cost of doing business. Using the funds puts us exactly where planned to be: strongly positioned to lend to businesses.”
Since accepting the CPP funds, the bank has increased lending by 15 percent. It has also expanded its assets under management to $252 million, an 18 percent increase since the start of the year.
“Many banks are downsizing to fit their capital position, as required by legislators, but Securant Bank & Trust’s capital position is strong,” said Mike Fleming, senior vice president of commercial lending with the bank. “That gives us the power to support local economic growth.”
Securant maintains that by accepting the federal infusion, it has been able to meet its growth goals during a down economy.
Over the last 18 months, the bank has changed its name, launched a new wealth management division and opened a new branch office in Elm Grove.
For more information, visit www.securantbank.com.