Community Bank declines bailout

Published 12:00 am Friday, December 12, 2008

RACELAND—Community Bank and its parent company, Community Bancorp announced that the company has elected not to apply or participate in the U.S. Treasury Department’s recently announced Troubled Asset Relief Program (“TARP”) Capital Purchase Program (“CPP”).

Community Bank’s President and Chief Executive Officer, Michael B. Riche’, said, “After a careful review of our strategic plan, capital position, and regional market environment, management and the Board of Directors has elected not to apply or participate in the program.”

Community Bank’s financial performance has been well above the banking norms with a capital position and profitability that have consistently exceeded its peer group nationally. As of September 30, 2008, the bank had assets totaling $318 million, an increase of 24 percent from a year earlier. Asset quality also remains strong.

Community Bank operates 10 banking centers in the parishes of Lafourche, Assumption, Terrebonne and St. John the Baptist.

Riche’ further stated, “In our evaluation of the position of our bank, we could not make a compelling argument in support of a decision to participate in the program. The very things that the CPP program intended, we have been able to provide in the markets without the involvement of tax payer funds.”

Riche’ concluded, “This program makes sense for many organizations, but Community Bank is well positioned for the future without the need for U.S. Treasury capital under the Capital Purchase Program.”